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Investing.com -- Prysmian (BIT:PRY) on Thursday upgraded its 2025 outlook following a strong second quarter performance that saw the company exceed expectations in most business segments.
The cable manufacturer reported second quarter revenues of €4,883 million, 2% above company consensus of €4,810 million. Organic growth reached 3.2%, below consensus expectations of 5.6%.
Adjusted EBITDA came in at €605 million, 4% ahead of company consensus of €581 million, with margins reaching 12.4%, approximately 30 basis points above expectations.
The company’s Renewable Transmission segment continued its strong performance with 22.8% organic growth, though slightly below consensus of 26.9%. The high-voltage backlog decreased slightly to approximately €16 billion.
Power Grids showed accelerated organic growth of 5.2%, exceeding consensus of 2.8%, and achieved record margins. The segment’s EBITDA beat expectations by 7%.
Electrification posted a 1.5% organic decline, compared to consensus expectations of 1% growth. Within this segment, Industrial & Construction weakened by 3.2% quarter-over-quarter, while Specialties returned to positive territory with 2.4% growth on easier comparisons.
Digital Solutions continued its recovery with 2.9% organic growth, below consensus of 5.5%, with EBITDA 15% ahead of expectations, benefiting from the Channell acquisition and organic improvements.
Free cash flow also exceeded expectations by 5%.
Prysmian has raised its 2025 outlook to account for the Channell acquisition (completed in June), USD devaluation impacts, and organic performance improvements.
The company now targets adjusted EBITDA of €2,300-2,375 million, up from the previous €2,250-2,350 million, and free cash flow of €1,000-1,075 million, increased from €950-1,050 million.
The revised EBITDA guidance is 1% above consensus at the midpoint, while the free cash flow target aligns with consensus expectations.
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