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Investing.com -- Prysmian SpA (BIT:PRY) on Thursday raised its full-year 2025 guidance after reporting third-quarter revenue and earnings slightly ahead of forecasts, supported by strong results in its Renewable Transmission and Power Grids units.
The Italian cable manufacturer posted third-quarter revenue of €5.03 billion, 3% higher than company consensus of €4.86 billion.
Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached €644 million, 1% above expectations, implying a margin of 12.8%, about 30 basis points below the 13.1% consensus.
Organic growth for the period came in at 9.2%, beating the 7.8% forecast. Jefferies described the update as “solid but facing a high bar,” adding that “stronger growth & good delivery in Transmission and a much stronger contribution than expected in Digital Solutions, were offset by weaker Electrification and margins slightly below in Power Grids.”
By segment, Renewable Transmission posted 39% organic growth against expectations of 28%, driven by new capacity and smooth execution.
Power Grids grew 15% organically, ahead of the 8% consensus, with steady performance in North America and Europe.
Electrification recorded no organic growth compared with expectations of a 3% increase, while Digital Solutions rose 13%, surpassing the 9% forecast and benefiting from the Channell acquisition.
Renewable Transmission EBITDA was 15% above consensus, with margins improving quarter on quarter. Power Grids EBITDA exceeded forecasts by 2%, while Electrification came in 8% below.
Digital Solutions EBITDA was 13% ahead, helped by consolidation and organic improvement in its portfolio.
Prysmian, which manufactures energy and telecom cables used in power transmission, construction, and communications, upgraded its 2025 guidance.
The company now targets adjusted EBITDA between €2.38 billion and €2.43 billion, up from €2.3 billion to €2.38 billion.
The midpoint of the new range aligns with consensus at €2.41 billion. Free cash flow is now expected between €1.03 billion and €1.13 billion, compared with €1 billion to €1.08 billion previously.
Jefferies said Prysmian is “likely not seeing the benefits of copper tariffs just yet, but bodes well for 2026.” The note added that the upgraded guidance was “driven by the strong performance in Transmission and North America.”
The brokerage maintained its “buy” rating on Prysmian with a price target of €102, an 11% upside from the prior closing price of €91.70. Jefferies said it expects “slight positive consensus revisions towards the higher end of the range.”
Prysmian reported a stable high-voltage backlog of about €16 billion. In 2024, the Milan-based group generated €17 billion in revenue and €1.9 billion in adjusted EBITDA.