Prysmian (PRY) Q2 2024 earnings summary

Executive summary

• Achieved strong 1H 2024 performance with adjusted EBITDA of €869 million (margin 11.1%), robust cash generation, and net profit of €402 million, driven by Transmission and Power Grid segments.

• Completed Encore Wire acquisition for $4.6 billion, rapidly integrating and expanding North American presence, adding $2.6 billion in revenue and $517 million EBITDA on a pro-forma basis.

• Upgraded FY24 adjusted EBITDA guidance to €1,900–€1,950 million and free cash flow to €840–€920 million, reflecting improved outlook and Encore Wire contribution.

• Maintained progress on decarbonization, achieving a 36% reduction in Scope 1 & 2 GHG emissions versus 2019.

• Launched share buy-back program up to €375 million and exercised early redemption of €750 million convertible bond.

Financial highlights

• Group sales for 1H 2024 were €7,819 million, down 2.3%–3.0% year-over-year; adjusted EBITDA at €869 million, margin stable at 11.1%.

• Net profit was €402–€410 million, stable year-over-year.

• Free cash flow (LTM) at €889 million, up 57% year-over-year, supporting deleveraging and dividend payments.

• Net financial debt reduced to €1,321 million from €2,065 million a year earlier.

• Tax rate at 23.9% of EBT, improved from 29.0% in 1H 2023.

Outlook and guidance

• Upgraded FY24 adjusted EBITDA guidance to €1,900–€1,950 million and free cash flow to €840–€920 million, including Encore Wire from July.

• Scope 1 & 2 GHG emissions reduction target of 36% and Scope 3 reduction of 13% vs. 2019.

• Confident in achieving or exceeding guidance, with further clarity expected after Q3 results; guidance assumes stable geopolitical conditions.

• Transmission segment targets 14.5% EBITDA margin for 2024 and 16% for 2025, supported by new capacity.