Prysmian raises 2026 adjusted EBITDA forecast to €3.125 billion
Key Facts
Prysmian raised its 2026 forecast for the second time, setting adjusted earnings before interest, taxes, depreciation and amortization at between €3.075 billion and €3.125 billion, compared with a previous range of €2.8 billion to €2.9 billion. The announcement came on October 29, the date of its third-quarter results, after the company posted the highest quarterly adjusted earnings of this kind in its history. Chief Executive Massimo Battaini said the quarter was “the best for the company so far,” adding that the quality of the results gave management confidence to raise its forecast again. Investing.com reported that adjusted earnings exceeded analysts’ consensus of €793 million, while revenue also topped their expectations of €5.93 billion. The revision reflects improved operating and cash flow expectations, while the quarterly decline in net profit remained a counterpoint in the results.
Adjusted earnings before interest, taxes, depreciation and amortization were €851 million in the third quarter, up 32.1% year on year. Group revenue rose to €6.417 billion from €5.030 billion in the corresponding quarter of 2025, with organic growth of 13.1%. The company described the record figure as its highest quarterly adjusted earnings, a measure that differs from unadjusted EBITDA. The group’s margin at standard metal prices also rose to 16.8%, from 14.8% a year earlier. In the first nine months, revenue reached €17.656 billion, compared with €14.684 billion, with organic growth of 9.2%.
The transmission segment led business growth, with its revenue rising organically 23.1% in the third quarter and its margin increasing to 20.0% from 17.8% in the same period last year. Prysmian said strong demand across regions supported growth in the power grids segment, which recorded organic growth of 7.5%. In digital solutions, revenue increased organically 17.3%, and the margin rose to 25.0% from 19.6% a year earlier. The company attributed the unit’s performance to its competitive advantage in producing fiber in the United States and to Channell’s accelerating contribution. These figures put margin improvement alongside sales growth, with performance varying across businesses.
The operating improvement extended to year-to-date results: adjusted earnings in the first nine months rose to €2.182 billion from €1.776 billion in the corresponding period of 2025. The adjusted earnings margin climbed to 15.5% from 14.1%. Free cash flow for the twelve months ended September 30 was €1.434 billion, compared with €859 million a year earlier. On the same date, net financial debt fell to €2.857 billion from €4.318 billion. The company raised its 2026 free cash flow forecast to a range of €1.75 billion to €1.85 billion, from €1.65 billion to €1.75 billion previously.
By contrast, group net profit in the third quarter fell 31.4% to €408 million from €595 million a year earlier, according to Investing.com. For the first nine months, net profit was €998 million, including €977 million attributable to group shareholders, compared with €1.036 billion and €1.019 billion, respectively, in the corresponding period of 2025. The company said the comparison was partly affected by a one-off gain from the sale of its stake in YOFC last year. As a result, quarterly net profit did not keep pace with the increase in revenue and adjusted earnings. The results therefore show divergent trends between improved operating performance and a decline in net profit year on year.
The October increase follows an earlier revision in the second quarter, when Prysmian raised its 2026 adjusted earnings range to €2.8 billion–€2.9 billion from €2.625 billion–€2.775 billion, and increased its free cash flow forecast to €1.65 billion–€1.75 billion from €1.3 billion–€1.4 billion. The company now expects to exceed its 2028 adjusted earnings and free cash flow targets two years ahead of schedule. On investment, the board approved the construction of a second copper rod mill at the Encore Wire facility in Texas. The company announced its third-quarter results on October 29, according to its financial calendar. Exceeding targets ahead of schedule and the new investment in production capacity outline the next step after the annual forecast increase.