Prysmian (PRY) Q2 2024 earnings summary

Executive summary

• Achieved strong 1H 2024 results with adjusted EBITDA of €869–€870 million and an 11.1% margin, driven by robust Transmission and Power Grid performance and solid cash generation.

• Completed the Encore Wire acquisition ahead of schedule, rapidly integrating and expanding North American presence, with initial commercial synergies underway.

• Upgraded full-year 2024 EBITDA guidance to €1.9–1.95 billion, reflecting confidence in continued strong performance and Encore Wire's contribution.

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

• Major contract wins and backlog growth in Transmission, plus new leadership appointments and revised sustainability targets.

Financial highlights

• Group sales for 1H 2024 were €7,819 million, down 2.3–3.0% year-over-year; adjusted EBITDA at €869–€870 million, down 1.0%, with margin stable at 11.1%.

• Group net income/profit was €402–€410 million, stable year-over-year; tax rate at 23.9%.

• Free cash flow (LTM) reached €889–€900 million, supporting deleveraging and dividend payments.

• Net financial debt reduced to €1,321 million from €2,065 million a year earlier, aided by convertible bond conversion and share buyback.

• Dividend of €0.70 per share distributed in April 2024.

Outlook and guidance

• Upgraded FY24 adjusted EBITDA guidance to €1.9–1.95 billion, including Encore Wire's expected contribution.

• Free cash flow guidance raised to €840–€920 million, with a midpoint of €880 million and stretch target of €920 million.

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

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

• Guidance assumes stable geopolitical conditions and no major supply chain disruptions.