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1. Company Snapshot

1.a. Company Description

Prysmian S.p.A., together with its subsidiaries, produces, distributes, and sells cables and systems, and related accessories for the energy and telecommunications industries worldwide.The company operates through three segments: Projects, Energy, and Telecom.The Projects segment designs, produces, and installs high and extra high voltage cables for electricity transmission from power plants, and within transmission and primary distribution grids; high voltage cabling systems for terrestrial and submarine applications; submarine cable solutions for power transmission and distribution; data transmission cables; and umbilical cables, hoses, and electrical, optical, and signalling components for oil well management, as well as offers services for terrestrial and submarine interconnections between various countries and between offshore wind farms and the mainland, which is used for generation and distribution of electricity.


The Energy segment includes trade and installers; power distribution and overhead transmission lines; industrial and network components for various industries, which comprise oil and gas, downhole technology, elevators, automotive, nuclear, mining, marine, water, and infrastructure sectors, as well as for renewable energy field, military, railways, and cranes; and provides asset monitoring solutions.The Telecom segment manufactures cable systems and connectivity products, such as optical fiber, optical cables, connectivity components and accessories, optical ground wires, and copper cables that are used in telecommunication networks.Prysmian S.p.A. was founded in 1879 and is headquartered in Milan, Italy.

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1.b. Last Insights on PRY

Prysmian S.p.A.'s recent performance was negatively impacted by a cautious outlook, with the company guiding for a 22% increase in core profit, which some analysts deemed conservative. The potential U.S. tariffs on copper and aluminium, key materials for cable manufacturing, also pose a threat to profitability. Furthermore, the suspension of offshore wind power leases by the U.S. government, a sector in which Prysmian operates, has added to the company's challenges. The shift towards AI-driven research, as seen in the success of a hedge fund startup, may also disrupt Prysmian's business model.

1.c. Company Highlights

2. Prysmian Group's 2025 Earnings: A Record-Breaking Performance

Prysmian Group reported a record-breaking EBITDA of EUR 2.4 billion for 2025, a significant EUR 500 million growth over 2024, driven by perimeter changes, the full recognition of Encore Wire's impact, and the new acquisition Channell. The company's adjusted EBITDA margin expanded by 130 basis points to 14.2%. The strong financial performance was accompanied by a net income of EUR 1.3 billion and a cash generation of EUR 1.2 billion, with a 50% conversion rate vis-a-vis EBITDA. The actual EPS came out at '1.21', beating estimates at '1.19'.

Publication Date: Mar -04

📋 Highlights
  • Record EBITDA Growth:: Achieved EUR 2.4 billion EBITDA in 2025, up EUR 500 million (+27%) from 2024, driven by acquisitions (Encore Wire, Channell) and perimeter changes.
  • Free Cash Flow Leadership:: Generated EUR 1.2 billion free cash flow with a 50% EBITDA conversion rate, exceeding 2026 guidance and ahead of the 2028 EUR 2.7 billion EBITDA target.
  • Transmission Segment Strength:: EBITDA grew EUR 200 million (+10%), despite EUR 80 million adverse ForEx impact, with strong organic and margin expansion.
  • 2026 EBITDA Guidance:: Midpoint of EUR 2.7 billion, a EUR 300 million increase from 2025, supported by perimeter effects and continued demand in Power Grid and Digital Solutions.
  • Sustainability Revenue Growth:: Sustainability-linked revenues to rise from 44% in 2025 to 48% in 2026, with EUR 2 billion data center revenue target (10% of total revenue) by 2026.

Segmental Performance

The transmission segment was the strongest contributor, with a EUR 230 million growth driven by 30% organic growth and an excellent margin expansion. Massimo Battaini highlighted that the company is seeing strong growth in power distribution, particularly in the US market for medium and high voltage, and mentioned that the company can't keep up with the demand and would sell more capacity if available.

Outlook and Guidance

The company's outlook for 2026 is positive, with a EUR 2.7 billion EBITDA midpoint guidance, a EUR 300 million increase over the 2025 ending point. The free cash flow guidance implies a 50% conversion rate, EUR 1.3 billion, well ahead of the 2026 target. The company's sustainability-linked revenues are expected to move from 44% in 2025 to 48% in 2026.

Valuation and Metrics

With a P/E Ratio of 25.58 and an EV/EBITDA of 12.6, the market is pricing in a certain level of growth and profitability. The company's ROE is 22.15%, indicating a strong return on equity. The Net Debt / EBITDA ratio is 1.27, indicating a manageable level of debt. The Dividend Yield is 0.81%, and the Free Cash Flow Yield is 4.46%, providing a relatively attractive return for investors.

Growth Prospects and M&A

Massimo Battaini discussed the company's strategy for balancing market share and pricing, stating that the company has raised prices without losing market share, particularly in the North American I&C segment. The company is exploring opportunities in three main regions: the US, Europe, and Latin America, focusing on businesses involved in electrification and power grid.

3. NewsRoom

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Rio Tinto and Prysmian partner to deliver innovative low-carbon aluminium solutions for the data centre market

Mar -12

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Prysmian Partners with Rio Tinto for Innovative Aluminum Solution with ELYSIS(TM), Accelerating Sustainability Commitment

Mar -12

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Prysmian Strengthens Grid Resilience Through Sustainable Materials Innovation

Mar -11

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Prysmian to Make PDAC 2026 Debut and Showcase Next-Generation Mining Solutions

Feb -27

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Prysmian SpA (PRYMF) Q4 2025 Earnings Call Highlights: Record EBITDA and Strategic Growth ...

Feb -26

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Prysmian to Make PDAC 2026 Debut and Showcase Next-Generation Mining Solutions

Feb -16

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Prysmian’s Eastern Green Link 4 Win Extends HVDC Growth Story

Feb -04

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Prysmian (BIT:PRY) Valuation Check After Winning Major UK Subsea Cable Contract

Feb -04

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.71%)

6. Segments

Energy

Expected Growth: 7.5%

Prysmian S.p.A.'s 7.5% growth in Energy segment is driven by increasing demand for renewable energy, grid modernization, and electrification of transportation. Growing investments in offshore wind farms, high-voltage direct current (HVDC) transmission systems, and submarine cable projects also contribute to this growth.

Projects

Expected Growth: 8.5%

Prysmian S.p.A.'s 8.5% growth is driven by increasing demand for high-voltage cables, offshore wind farm projects, and grid upgrade initiatives. Additionally, the company's focus on innovation, cost savings, and strategic acquisitions contribute to its growth momentum.

Telecom

Expected Growth: 8.0%

Prysmian S.p.A.'s Telecom segment growth of 8.0% is driven by increasing demand for high-speed broadband connectivity, 5G network deployments, and fiber-to-the-home (FTTH) infrastructure investments. Additionally, the growing need for data centers and cloud infrastructure, as well as the adoption of IoT devices, contribute to the segment's growth.

7. Detailed Products

Telecom Cables

Prysmian's telecom cables are designed to provide high-speed data transmission and connectivity for telecommunications networks.

Power Distribution Cables

Prysmian's power distribution cables are designed to transmit and distribute electrical power efficiently and safely.

Renewable Energy Cables

Prysmian's renewable energy cables are designed to connect renewable energy sources, such as wind farms and solar panels, to the power grid.

Industrial Cables

Prysmian's industrial cables are designed for use in industrial applications, such as manufacturing, oil and gas, and mining.

Submarine Cables

Prysmian's submarine cables are designed for underwater use, connecting offshore platforms, wind farms, and other subsea installations.

Optical Fibre Cables

Prysmian's optical fibre cables are designed for high-speed data transmission over long distances.

Specialty Cables

Prysmian's specialty cables are designed for use in specific industries, such as aerospace, automotive, and medical devices.

8. Prysmian S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Prysmian S.p.A. operates in the cable systems industry, where substitutes are limited. However, the company faces some threat from alternative materials and technologies.

Bargaining Power Of Customers

Prysmian S.p.A. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's products are often customized, making it difficult for customers to switch suppliers.

Bargaining Power Of Suppliers

Prysmian S.p.A. relies on a few large suppliers for raw materials, which gives them some bargaining power. However, the company's scale and global presence help to mitigate this risk.

Threat Of New Entrants

The cable systems industry has high barriers to entry, including significant capital requirements and technical expertise. This makes it difficult for new entrants to challenge Prysmian S.p.A.'s market position.

Intensity Of Rivalry

The cable systems industry is highly competitive, with several large players competing for market share. Prysmian S.p.A. faces intense rivalry from companies such as Nexans and Sumitomo Electric Industries.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.08%
Debt Cost 7.03%
Equity Weight 56.92%
Equity Cost 9.37%
WACC 8.36%
Leverage 75.69%

11. Quality Control: Prysmian S.p.A. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Signify

A-Score: 5.8/10

Value: 8.7

Growth: 3.4

Quality: 5.5

Yield: 9.4

Momentum: 3.0

Volatility: 5.0

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NKT

A-Score: 5.4/10

Value: 7.8

Growth: 7.4

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

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Nexans

A-Score: 5.3/10

Value: 6.6

Growth: 6.8

Quality: 5.3

Yield: 3.1

Momentum: 7.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Prysmian

A-Score: 5.2/10

Value: 3.9

Growth: 7.3

Quality: 5.2

Yield: 2.5

Momentum: 8.5

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
nVent Electric

A-Score: 4.5/10

Value: 1.5

Growth: 5.8

Quality: 6.7

Yield: 2.5

Momentum: 8.0

Volatility: 2.3

1-Year Total Return ->

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Stock-Card
Landis+Gyr

A-Score: 3.5/10

Value: 6.7

Growth: 0.4

Quality: 2.5

Yield: 5.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

99.76$

Current Price

99.76$

Potential

-0.00%

Expected Cash-Flows