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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's Q3 Earnings: A Strong Performance

Prysmian's Q3 2025 earnings report was impressive, with EBITDA reaching EUR 644 million, a significant increase of EUR 100 million compared to the same quarter last year. The EBITDA margin also expanded to 14.8%, up 1 percentage point from the same period last year. The company's EPS came in at EUR 1.01, beating analyst estimates of EUR 0.997. Revenue growth was robust, with organic growth of 9% in Q3, bringing the overall 9-month growth to 6%. The company's financial performance was driven by its Transmission, Power Grid, and Electrification business units, with the Transmission segment reporting a remarkable 40% growth in the quarter.

Publication Date: Nov -01

📋 Highlights
  • Q3 EBITDA Surge:: EBITDA reached EUR 644 million, a EUR 100 million increase YoY despite a EUR 30 million adverse impact.
  • Margin Expansion:: Q3 EBITDA margin hit 14.8%, up 1 percentage point compared to the 9-month 2024 period.
  • Transmission Growth:: Transmission segment delivered 40% QoQ growth, EUR 16 billion backlog, and an 18% EBITDA margin.
  • Net Income Doubling:: Group net income surged to EUR 1.022 billion, driven by a EUR 350 million gain from YOFC stake disposal.
  • Guidance Upgrade:: EBITDA guidance raised to EUR 2.4 billion (+EUR 60 million midpoint), with free cash flow projected at EUR 1.025 billion.

Segmental Performance

The company's segmental performance was a key highlight, with the Transmission segment reporting a EUR 16 billion backlog and EUR 3 billion in new project awards in Q3. The Power Grid segment saw organic growth of 15%, with North America outpacing this growth, driven by strong demand in the United States. The Electrification segment also reported strong organic growth in the United States, with 10% year-over-year growth in Q3. As Massimo Battaini, CEO, noted, "We expect to see a reduction in imports of cables in the U.S. due to the 50% tariff on metal content, which would create an imbalance in the market."

Valuation and Outlook

Prysmian's valuation metrics suggest that the market is pricing in a certain level of growth. The company's P/E Ratio stands at 34.14, while its EV/EBITDA ratio is 11.14. With analysts estimating revenue growth of 6.8% next year, the market may be expecting a continuation of the company's strong performance. The company's guidance upgrade, with EBITDA expected to reach EUR 2.4 billion and free cash flow expected to reach EUR 1.025 billion, is a positive sign. The company's net debt is expected to be around EUR 3 billion by year-end, much lower than expected, thanks to the disposal of YOFC shares.

Growth Prospects

Prysmian's growth prospects look promising, driven by its strong order intake, accretion of EBITDA margin from the Channell acquisition, and growth in North America. The company's data center business is also expected to continue growing, with significant opportunities in the U.S. market. As Massimo Battaini mentioned, "We're developing innovative solutions to benefit the data center market, including high-density cables with compact standard diameters." With a strong track record of execution and a solid financial position, Prysmian is well-placed to capitalize on these opportunities.

3. NewsRoom

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Prysmian Invests in Environmental Product Declarations for Key Products Across Markets

Dec -03

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Northern Sun Energy and PowerFlex Announce Solar + Storage Behind-the-Meter Project for Prysmian Manufacturing

Dec -03

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How Investors May Respond To Prysmian (BIT:PRY) Strong Sales and Earnings Growth in Nine-Month Results

Nov -12

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Prysmian Extends Leadership in Optical Fiber Innovation With World's First 160 Micron Bend Insensitive Fiber, Setting New Benchmark In Network Miniaturization

Nov -10

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Prysmian Hosts Ribbon Cutting Ceremony to Unveil $63.8M Du Quoin Facility Expansion

Nov -04

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Prysmian Boosts Use of Recycled Copper in U.S. Amid Trade Tension

Oct -22

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Analysis-'Every electron counts': Why renewables stocks are back in play

Oct -09

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Should You Rethink Prysmian After Its 19% Surge on Infrastructure Optimism?

Oct -03

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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: 8.5

Growth: 3.4

Quality: 5.5

Yield: 9.4

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Nexans

A-Score: 4.8/10

Value: 6.8

Growth: 6.8

Quality: 5.0

Yield: 3.1

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Prysmian

A-Score: 4.8/10

Value: 2.8

Growth: 7.3

Quality: 4.0

Yield: 2.5

Momentum: 8.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
NKT

A-Score: 4.4/10

Value: 5.5

Growth: 7.4

Quality: 5.3

Yield: 0.0

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
nVent Electric

A-Score: 4.3/10

Value: 1.4

Growth: 5.4

Quality: 6.6

Yield: 2.5

Momentum: 7.5

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Landis+Gyr

A-Score: 3.9/10

Value: 6.5

Growth: 0.4

Quality: 3.7

Yield: 5.6

Momentum: 2.5

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

84.98$

Current Price

84.98$

Potential

-0.00%

Expected Cash-Flows