Introduction & Market Context
Prysmian SpA (BIT:PRY) reported its first quarter 2025 results on May 8, showcasing solid organic growth of 5.0% and improved EBITDA margins, primarily driven by exceptional performance in its Transmission segment. The Italian cable manufacturer maintained its full-year guidance while highlighting progress on sustainability targets and providing updates on strategic acquisitions.
The company’s stock closed at €50.54 on May 7, 2025, down 0.24% ahead of the earnings release, with shares trading well below their 52-week high of €72.76 but significantly above the 52-week low of €38.57.
Quarterly Performance Highlights
Prysmian delivered a strong start to 2025, with adjusted EBITDA reaching €527 million, representing a margin of 13.1% at standard metal prices. This marks a continued improvement from the 12.4% margin reported in Q1 2024 and builds on the company’s record performance in the previous year.
As shown in the following chart of quarterly performance, Prysmian has maintained consistent EBITDA margin improvement throughout the past five quarters:
Total revenues for Q1 2025 amounted to €4,771 million, compared to €3,687 million in the same period last year. The company’s net income reached €155 million, down from €190 million in Q1 2024, while group net income stood at €150 million versus €185 million a year earlier.
The comprehensive profit and loss statement reveals the full financial picture for the quarter:
Segment Analysis
The Transmission segment emerged as the standout performer, delivering exceptional organic growth of 57.2% and significantly improved margins. Revenues in this segment increased to €743 million from €474 million in Q1 2024, while adjusted EBITDA nearly doubled to €124 million, representing a margin of 16.9% at standard metal prices.
The following chart illustrates the remarkable performance of the Transmission segment:
The Power Grid segment maintained robust margins despite a slight decline in organic growth. Revenues reached €874 million with a -2.2% organic growth rate, while adjusted EBITDA stood at €116 million, representing a margin of 15.2% at standard metal prices.
The Industrial & Construction segment reported revenues of €1,923 million with a -1.0% organic growth rate. Despite the slight decline, adjusted EBITDA improved to €173 million with a margin of 11.6% at standard metal prices.
The Digital Solutions segment also performed well, with revenues of €339 million representing 3.4% organic growth. Adjusted EBITDA increased to €42 million, with a margin of 13.2% at standard metal prices.
The following table provides a comprehensive breakdown of segment performance at standard metal prices:
ESG Progress and Strategic Initiatives
Prysmian continues to make significant progress on its sustainability targets. The company reported a 37% reduction in greenhouse gas emissions (Scope 1 & 2) compared to 2019 levels and has brought forward its Net Zero target to 2035 from the previous 2050 goal. Additionally, 42.9% of revenues are now linked to sustainable solutions, while recycled content has increased to 18.8%.
The company’s ESG performance is illustrated in the following chart:
On the strategic front, Prysmian provided an update on its acquisition of Channell, noting that the transaction is on track with closing expected in Q2 2025. This represents Prysmian’s first major acquisition in the Digital Solutions segment, with over 90% of Channell’s revenues coming from the U.S. market.
The closing remarks and Channell acquisition details are presented here:
Financial Position and Outlook
Prysmian’s balance sheet shows a significant increase in net debt, which rose to €4,884 million as of March 31, 2025, compared to €1,693 million a year earlier. This increase is primarily attributed to acquisitions, convertible bonds, share buy-backs, and working capital changes. Despite the higher debt level, the company continues to generate strong free cash flow, reporting €998 million over the last twelve months.
The following chart illustrates the components contributing to the change in net debt:
The company’s balance sheet remains solid, with total shareholders’ equity of €5,170 million as of March 31, 2025:
Looking ahead, Prysmian confirmed its 2025 guidance, targeting adjusted EBITDA of €2,250-2,350 million and free cash flow of €950-1,050 million. The company also aims to further reduce greenhouse gas emissions by 38-40% compared to 2019 levels.
CEO Massimo Battaini expressed confidence in the company’s outlook, highlighting the excellent performance in the Transmission segment and the strategic importance of the Channell acquisition. The company’s focus remains on sustainable growth, operational excellence, and strategic expansion in key markets.
Full presentation:
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