Prysmian, the group specialized in the production of cables, has closed its first nine months of the year with a modest drop in revenues, but with one growth in margins and net result. The company has the outlook confirmed, already revised upwards with the publication of the first half results, to take into account the solid performance of the group and the acquisition of Encore Wire. The thought remains for the quotation also to New York: what is certain is that the Capital Markets Day, in which the new objectives will be communicated, will be held right there.
Il title in Piazza Affari, which yesterday closed down 3,6% at 65,36 euros, today is quoted at 65,04 euros in the late morning, down 0,49%, after a swing between a high this morning at 65,84 euros and a low at 64,24 euros.
Revenues down by 1,4%, but adjusted ebitda rises by 9,6%
As of September 30, 2024, the revenues went from 11,82 to 12,36 billion given the consolidation of Encore Wire, but with one negative organic growth of 1,4%. Instead the margini are increasing from 10,9% to 11,4% with a adjusted EBITDA of 1,4 billion against 1,28 billion (+9,6%) in the same period of 2023. TheNet income It also grew from 575 to 619 million. Thefinancial debt net increased to 5,04 billion from 2,07 billion in the first nine months of 2023. In third trimester only the group saw adjusted EBITDA rise by 32% to 540 million and sales increase by 19% to 4,54 billion, with a profit of 217 million (+28% y/y).
2024 guidance confirmed: adjusted EBITDA between 1,90 and 1,95 billion
The company confirmed the guidance which had already been improved on the occasion of the publication of the first half results, to take into account the solid performance of the group and the acquisition of Encore Wire. Full year guidance calls for an adjusted EBITDA of between 1,90 billion and 1,95 billion; a Free Cash Flow of between 840 million and 920 million and a reduction in Scope 1 & 2 greenhouse gas emissions of 36% and a reduction in Scope 3 of 13% compared to 2019, including Encore Wire within the scope.
“The results demonstrate that Prysmian is well positioned to pursue organic growth and margin improvement,” said Massimo Battaini, CEO of Prysmian. “The solid performance of Transmission and Power Grid, growing both in terms of revenues and profitability, is added to the improvement of our margin in Industrial & Construction in the third quarter, which for the first time, includes Encore Wire within our perimeter. These results confirm the strong cultural affinity between the companies and the positive impact of the acquisition on our performance. Prysmian's solid track record in achieving its objectives has allowed us to confirm our outlook for 2024, which we updated in the first half of 2024″
Battaini: New Projects Announced in March. Let's Reflect on Dual Listing on Wall Street
The company said that the presentation of the Capital Markets Day Will be held the March 26, 2025 in New York City and will be followed by Encore Wire's visit to McKinney, Texas, the following day on March 27, 2025. At that time, Battaini said, “we will announce our new ambitious goals. "
About the double listing in the US The CEO said during the earnings call that the issue is still being studied. “We are evaluating,” he said, “We will be able to draw a conclusion in the next couple of months. After the acquisition of Encore Wire, we thought we had all the conditions. We have significant exposure in terms of revenue and even greater exposure in terms of the company’s EBITDA to the US market.
Battaini, possible interest in Nexans' Industry & Solutions business
The CEO also said that regarding the dossier Nexans a decision will be made in the next few months “We look at the dossier, we don't know if it will make sense. There is a overlap significant” between the Prysmian and Nexans businesses with regards to the Business Industry & Solutions, but “it would provide us with a further perimeter advantage, additional market share, although it would probably lead to significant restructuring in terms of factory overlap. We will work on the case, study it, and make a decision in the coming months.”
