Prysmian SpA (BIT:PRY) presented its 1H 2025 Integrated Results on July 31, 2025, highlighting strong performance across most business segments and an upgraded outlook for the full year. The Italian cable manufacturer reported record Q2 EBITDA of €605 million, representing a significant improvement from €457 million in the same period last year. Following the earnings announcement, Prysmian's stock rose 0.73%, moving from €68.5 to €69, though remaining below its 52-week high of €76.94.
CEO Massimo Battaini expressed confidence in the company's trajectory, stating, "We are happy to upgrade the Prysmian perimeter guidance," highlighting particularly strong performance in the transmission and data center segments.
Quarterly Performance Highlights
Prysmian delivered impressive quarterly results, with adjusted EBITDA reaching €605 million in Q2 2025, up from €457 million in Q2 2024. The adjusted EBITDA margin at standard metal prices improved significantly to 14.5% from 12.7% in the same quarter last year, demonstrating enhanced operational efficiency.
The company reported organic growth of 4.0% for the first half of 2025, with revenues reaching €9.65 billion. Free cash flow generation remained strong at €979 million for the last twelve months, while greenhouse gas emissions were reduced by 38% compared to 2019 levels.
The Transmission segment was the standout performer with 22.8% organic growth in Q2 2025, increasing revenues from €610 million to €743 million year-over-year. Adjusted EBITDA for this segment jumped from €88 million to €125 million, with margins expanding from 14.7% to 17.1%.
The Power Grid segment also performed well with 5.2% organic growth in Q2, while Digital Solutions achieved 2.9% organic growth with margins improving from 13.3% to 16.8%. However, the Industrial & Construction segment faced challenges with a 3.2% organic decline, though it managed to expand margins from 10.6% to 14.1%.
Detailed Financial Analysis
Prysmian's profit and loss statement reveals solid financial performance for the first half of 2025:
The company reported 1H 2025 revenues of €9,654 million, with adjusted EBITDA of €1,132 million representing 11.7% of revenues at current metal prices and 13.8% at standard metal prices. Net income reached €437 million, with group net income of €426 million.
The company maintained a solid financial structure with net debt at €4,694 million as of June 30, 2025. The average debt maturity is 4 years, with approximately 80% at fixed rates, providing stability in the current interest rate environment.
Despite the strong overall performance, there is a slight discrepancy between the presentation's reported Q2 EBITDA of €605 million and the €600 million mentioned in earnings call reports. Additionally, while the presentation emphasizes 4.0% organic growth, the company did miss revenue forecasts by 1.01% according to earnings reports, with actual figures at €4.88 billion compared to the forecasted €4.93 billion.
Strategic Initiatives
Prysmian highlighted several strategic initiatives, including the completed acquisition of Channell, which strengthens its position in the connectivity market. The company continues to focus on sustainable solutions, with 43.6% of revenues now linked to sustainability, up from 43.1% in FY 2024.
Prysmian maintains a diverse shareholder structure with 43% ESG investors, reflecting its commitment to sustainability. The company has received recognition from various sustainability ratings agencies, including inclusion in the Dow Jones Sustainability Indexes and an A- rating from CDP.
The company is also advancing its innovation agenda with solutions such as E3X Robot, Sirocco Extreme, and Alesea, positioning itself as a technology leader in the cable industry.
Forward-Looking Statements
Based on strong first-half performance, Prysmian has upgraded its outlook for 2025:
- The adjusted EBITDA target has been raised to approximately €2,340 million (range €2,300-2,375 million), up from the previous guidance of €2,250-2,350 million.
- Similarly, the free cash flow target for 2025 has been upgraded to approximately €1,040 million (range €1,000-1,075 million) from the previous range of €950-1,050 million.
Looking further ahead, Prysmian remains confident in achieving its 2028 targets:
- These ambitious long-term goals include adjusted EBITDA of €2.95-3.15 billion; free cash flow of €1.5-1.7 billion; EPS CAGR of 15-19% for 2024-2028.
- The company also aims to increase the percentage of solutions in its revenue mix to 55%.
During the earnings call, CEO Battaini highlighted the growing importance of the data center market, noting: "Data center is growing. Our exposure to data center is larger." He also projected significant revenue growth, stating: "We will perform in '25 twice as much revenues than what we had in '24."
While the outlook is generally positive, potential risks include new US tariffs impacting the copper market; softening in the nonresidential market (except data centers); increased competition in high voltage transmission sector.