Prysmian (PRY) Q3 2024 earnings summary

Executive summary

• Achieved record Q3/9M EBITDA of €1,409M (11.4% margin), driven by strong Transmission and Power Grid performance and successful Encore Wire integration, which expanded North American leadership and boosted Industrial & Construction margins.

• Organic growth in Transmission reached 17.5% in Q3 and 12.3% for 9M, with Power Grid and Digital Solutions also contributing to margin improvements.

• Free cash flow (LTM) approached €1 billion, supporting guidance and capital allocation, with strong cash generation and working capital management.

• Sustainability KPIs advanced: 36% CO2 reduction (Scope 1 & 2 vs. 2019), 45% of revenues from sustainable products, and increased recycled content.

• Major contracts signed, new CEO and Board appointed, and €191M in dividends distributed.

Financial highlights

• Sales for 9M24 were €12,362M, with adjusted EBITDA at €1,409M (11.4% margin), and net profit at €619M.

• Free cash flow (LTM) was €979M, and net financial debt rose to €5,042M due to the €4,089M Encore Wire acquisition.

• Basic EPS for 9M24 was €2.22, up from €2.11 in 9M23.

• Net capital expenditure was €445M, up 75.9% year-over-year.

• Net income margin at 5.0% of sales, up from 4.9% year-over-year.

Outlook and guidance

• FY24 adjusted EBITDA guidance confirmed at €1,900–€1,950M, with free cash flow expected between €840–€920M.

• GHG emissions reduction targets reaffirmed: -36% for Scope 1 & 2, -13% for Scope 3 vs. 2019, including Encore Wire.

• Guidance assumes stable geopolitical and supply chain conditions; Capital Markets Day scheduled for March 2025.