Italy's Prysmian raises annual outlook after Q3 core profit jumps nearly 20% (updated)

Prysmian SpA

30/10/2025 06:42

Adds shares in paragraphs CEO comments in paragraphs 7-8, analysts comments in paragraphs 9-11, shares in 12

By Laura Contemori

Oct 30 (Reuters) - Italian cable maker Prysmian PRY.MI raised its 2025 guidance for the second time this year on Thursday, after strong performances in North America and its globally operating transmission business drove a 19.3% jump in third-quarter core earnings.

Full consolidation of recently acquired U.S. connectivity device manufacturer Channell also helped drive the results, CEO Massimo Battaini said in a statement.

Prysmian's adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were 644 million euros ($751 million) in the third quarter, beating a company-provided consensus estimate of 637 million euros. Quarterly revenue grew 9.2% organically to 5.03 billion euros.

Battaini highlighted the "excellent performance" of the transmission unit and the North America region as reasons for the outlook hike. The company now expects its adjusted EBITDA to land between 2.38 billion and 2.43 billion euros in 2025, versus a previously guided range of 2.30 billion to 2.38 billion euros.

The transmission division accounted for 877 million euros of the quarterly revenue, up 39% organically compared to last year. Revenue in the electrification segment was broadly unchanged at 2.70 billion euros.

However, the company's shares were down around 4% by 0940 GMT. They are still up more than 40% so far this year.

Analysts from J.P. Morgan said in a research note that the muted performance of the electrification business was a "key source of disappointment", adding the stock's recent strong run could trigger some profit-taking.

BIG M&A DEALS MORE LIKELY FROM 2027

Prysmian continues to explore merger and acquisition opportunities particularly in the United States, Latin America and Europe, Battaini told analysts during a call, but said larger deals would be likely only from 2027 onwards.

He also said a potential U.S. dual listing remains "a project we consider valuable", but did not provide further details, instead saying Prysmian would give an update when the time was right.

($1 = 0.8575 euros)

(Reporting by Laura Contemori in Gdansk; Additional reporting by Giulio Piovaccari in Milan; Editing by Milla Nissi-Prussak)

((Laura.Contemori@thomsonreuters.com;))