Friday, May 1, 2026

Prysmian S.p.A., World's Largest Electrical Cable Manufacturer Reports Earnings, Beats Expectations, Trades To All-Time High (PRY:Milan)

Another member of our hyper-concentrated electrical mini-portfolio.

From TradingView through April 30:

 

127.95 euros up 3.60 (+2.90%) at the close. The ATH was at 131.00 euros intraday. 

Up 47.75% Year-to-date and 167.57% over the last twelve months.

From Investing.com, April 30, 2026:

Earnings call transcript: Prysmian Q1 2026 beats expectations, stock rises 

Prysmian reported robust Q1 2026 results, with revenue reaching EUR 5.2 billion, surpassing the forecast of USD 5.11 billion. The company demonstrated strong organic growth and a significant increase in EBITDA, driving a 3.96% rise in its stock price. This performance reflects Prysmian’s strategic initiatives and operational efficiency, positioning it well for future growth.

Key Takeaways

  • Revenue exceeded forecasts, reaching EUR 5.2 billion with 5% organic growth.
  • EBITDA grew by EUR 80 million year-over-year, with a notable margin expansion.
  • Stock price increased by 3.96%, reflecting strong market confidence.
  • Strategic contracts with hyperscalers indicate future growth potential.
  • Forex impact was a headwind but is expected to decrease in upcoming quarters.

Company Performance

Prysmian’s performance in Q1 2026 was notably strong, with revenue and EBITDA significantly exceeding expectations. The company achieved a 5% organic growth in revenue, driven by robust performance across multiple business segments. This growth underscores Prysmian’s effective operational strategy and its ability to capitalize on market opportunities.

Financial Highlights

  • Revenue: EUR 5.2 billion, up 5% organically.
  • EBITDA: Increased by EUR 80 million year-over-year.
  • EBITDA Margin: Expanded to 14.2% from 13.1% in Q1 2025.
  • Net Profit: Nearly EUR 250 million, described as "outstanding."

Market Reaction

Following the earnings announcement, Prysmian’s stock rose by 3.96%, trading near its 52-week high of $148.90. This positive market reaction reflects investor confidence in the company’s strategic direction and its ability to deliver strong financial results. The stock has delivered a remarkable 162% return over the past year, though InvestingPro analysis suggests the shares are currently trading above their Fair Value. According to InvestingPro, Prysmian boasts a perfect Piotroski Score of 9, indicating exceptional financial strength. The company’s "GREAT" financial health rating and attractive PEG ratio of 0.41 suggest strong earnings growth potential relative to its P/E ratio of 29.81. Investors seeking deeper insights can access 14 additional ProTips and comprehensive metrics on the platform.

Outlook & Guidance

Prysmian’s forward guidance remains positive, with EPS forecast to reach $5.41 for FY2026, up from $5.06 in the last twelve months. Revenue forecasts indicate 6% growth ahead. The company is pursuing long-term agreements with hyperscalers, which are expected to drive future revenue. Additionally, Prysmian plans a 40% increase in global optical fiber and cable capacity to support its growth strategy. For investors seeking comprehensive analysis, the company is among the 1,400+ US equities covered by InvestingPro’s detailed Pro Research Reports, which transform complex financial data into actionable intelligence.

Executive Commentary

CEO Valerio Battista stated, "Our strong Q1 2026 results demonstrate the effectiveness of our strategic initiatives and our commitment to delivering value to our shareholders." He emphasized the importance of the company’s agreements with hyperscalers as a key growth driver.

Risks and Challenges

  • Forex impacts, although expected to decrease, remain a concern.
  • Margin pressure in the Power Grid segment due to cost inflation.
  • Potential supply chain disruptions could affect future performance.
  • Competitive market dynamics in the fiber optics industry.
  • Economic uncertainties that may impact global demand.

Q&A

During the earnings call, analysts inquired about the impact of forex fluctuations on future earnings and the company’s strategy to mitigate these effects. Prysmian’s management highlighted their focus on operational efficiency and strategic contracts to offset potential challenges.

Full transcript - Prysmian L (0NUX) Q1 2026:

Operator: Good day, and thank you for standing by. Welcome to Prysmian Q1 2026 Integrated Results webcast and conference call. I’d now like to hand the conference over to Massimo Battaini, Chief Executive Officer of Prysmian. Please go ahead, sir.

Massimo Battaini, Chief Executive Officer, Prysmian: Thank you. Good morning to everyone, and welcome to the earnings call for Q1 2026. We’re very excited to share our Q1 result that is well ahead of our expectation. When I say well ahead, I mean almost EUR 50 million upside over what we budgeted for Q1 2026. What is mostly settling is that the growth in EBITDA between Q1 2025, 2026 has been mainly achieved organically. If you take this EUR 80 million increase and you harmonize and neutralize the Forex, this will lead to a EUR 120 million growth in EBITDA, out of which China representing only EUR 40 million of this EUR 120 million. Also outstanding is the EBITDA margin in the quarter, 14.2%. 1.1 percentage point higher than what we recorded for last year.

With this set of result, can confirm that we are well on track to achieve the 2028 Capital Markets Day target of EUR 3 billion and plus, and also very confident to be able to hit the upper part of our guidance for 2026. Namely, well above the EUR 2.7 billion, EUR 2.7 billion of the midpoint. Before moving to the usual business by business review, I like to share with you some exciting news about the further expansion that we can have in the data center space through striking long-term agreements with the hyperscalers. These agreement are gonna be finalized in the coming weeks. Instrumental and fundamental to achieving this agreement is our footprint in terms of product and asset that we have in U.S....

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Capital Markets: "May Day: Market Looks for US Leadership"

From Marc to Market:

In holiday-thinned markets, the dollar is mostly softer as North American leadership is awaited.  In light of yesterday’s surge in the yen, and contrary to our expectation, it does appear that Japanese officials materially intervened yesterday. The intervention may have been for around $34.5 bln (~JPY5.4 trillion), which if accurate, would be larger than the average size of the intervention operations in 2024. Better confirmation will likely be available at the end of next week. 

Five G10 central banks met this week. The derivatives market adjusted expectations for this year’s course the 22 bp for the Bank of Canada. Two hikes are now fully discounted. There was a 19 bp increase in the implied year-end target rate for the European Central Bank, where three hikes are now fully discounted. The Bank of England’s hawkish hold saw the expected year-end base rate rise 15 bp to 68.5 bp. The Federal Reserve remains the only major central bank expected to cut rates, but the futures market has a little more than a basis point is discounted, down from nearly a dozen basis points at the end of last week....

....MUCH MORE  

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