Prysmian 1H 2025 slides: Transmission segment drives growth, outlook upgraded

Prysmian SpA (BIT:PRY) shares rose 1.84% to €69.76 on Thursday after the company presented strong first-half 2025 results, highlighted by exceptional performance in its Transmission segment and an upgraded full-year outlook.

Executive Summary

The Italian cable manufacturer reported adjusted EBITDA of €1,132 million for the first half of 2025, representing 13.8% of revenues at standard metal prices. Organic growth reached 4.0%, while free cash flow over the last twelve months hit €979 million.

"Excellent performance in Q2, sustained in particular by Transmission and Power Grid," noted CEO Massimo Battaini during the presentation, highlighting the company’s margin expansion across all segments.

Based on these results, Prysmian upgraded its full-year 2025 outlook, raising its adjusted EBITDA target from €2,300 ±50 million to approximately €2,340 ±40 million, and its free cash flow target from €1,000 million to approximately €1,040 million.

As shown in the following chart of key financial highlights:

Segment Performance

The Transmission segment emerged as the standout performer, delivering 37.9% organic growth in the first half of 2025 compared to the same period last year. Adjusted EBITDA for the segment reached €249 million, up from €150 million in 1H 2024, with margin improving from 14.0% to 17.0%.

This represents a slight moderation from the 60% organic growth reported in Q1, but still demonstrates exceptional momentum in this key business area.

The segment’s performance is illustrated in the following chart:

The Power Grid segment also showed positive results with 1.7% organic growth in 1H 2025. Adjusted EBITDA increased to €250 million from €238 million in 1H 2024, with margin improving from 14.8% to 15.4%.

The Industrial & Construction segment faced some headwinds with organic growth declining 2.2% in 1H 2025. However, adjusted EBITDA margins improved significantly from 10.9% to 12.9%, demonstrating the company’s ability to enhance profitability despite revenue challenges.

The Digital Solutions segment achieved 3.2% organic growth in 1H 2025, with adjusted EBITDA increasing to €105 million from €76 million in 1H 2024. Margins improved substantially from 12.1% to 15.1%.

Detailed Financial Analysis

Prysmian’s profit and loss statement reveals a net income of €437 million for 1H 2025, with group net income at €426 million. Adjusted EBIT reached €845 million, while reported EBIT stood at €743 million, representing 7.7% of revenues.

The comprehensive financial performance is detailed in the following table:

The company maintained a strong cash flow position, with free cash flow (levered) of €983 million. Net debt decreased to €4,694 million as of June 30, 2025, down from €5,004 million a year earlier, despite the €100 million acquisition of Channell.

The following chart illustrates the company’s cash flow dynamics:

Prysmian has maintained a solid financial structure with an average debt maturity of 4 years. Approximately 80% of the company’s debt is at fixed rates, providing stability in the current interest rate environment.

Strategic Initiatives & Outlook

Based on the strong first-half performance, Prysmian upgraded its full-year 2025 guidance. The adjusted EBITDA target was raised from €2,300 ±50 million to approximately €2,340 ±40 million, while the free cash flow target was increased from €1,000 million to approximately €1,040 million.

The following chart details the factors contributing to the guidance upgrade:

Looking further ahead, Prysmian confirmed it remains on track to achieve its ambitious 2028 targets, which include:

• Adjusted EBITDA of €2.95-3.15 billion
• Free cash flow of €1.5-1.7 billion
• 15-19% EPS CAGR for 2024-2028
• 55% of revenue from solutions

ESG Performance

Prysmian continues to make progress on its sustainability goals. In the first half of 2025, 43.6% of revenues were linked to sustainable solutions, up from 43.1% at the end of 2024. The company achieved a 38% reduction in Scope 1&2 greenhouse gas emissions compared to 2019 levels.

The company also reported that 19.9% of its PE jacket and copper content now comes from recycled materials, up from 16.2% at the end of 2024. On the social front, 43.6% of desk workers hired were women, though the percentage of women in executive positions remained relatively flat at 19.1%.

Prysmian extended its supply agreement with Alcoa (NYSE:AA) for low-carbon aluminum and successfully deployed E3X coated overhead conductor across the Middle East in collaboration with GCCIA, further demonstrating its commitment to sustainable solutions.

The completion of the Channell acquisition, mentioned in the Q1 earnings call, strengthens Prysmian’s position in connectivity solutions and supports its strategic focus on electrification and digitalization infrastructure.

With strong first-half results, upgraded guidance, and clear long-term strategic direction, Prysmian appears well-positioned to capitalize on global trends in energy transition and digital infrastructure development.

Full presentation:

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