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Prysmian: 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'.

PRY.MI

EUR 99.6

1.86%

A-Score: 5.2/10

Publication date: March 2, 2026

Full Report

Author: Analystock.ai

📋 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.

Prysmian's A-Score