Prysmian (PRY) Q4 2024 earnings summary

Executive summary

• Achieved record Adjusted EBITDA of €1,927 million for 2024, with an 11.3% margin, up 18.4% over 2023, driven by strong Q4 organic growth in transmission, power grid, and digital solutions.

• Free cash flow reached €1,011 million, a 40% increase year-over-year, with a 6.3% yield, and net income rose to €729 million.

• Encore Wire acquisition completed, integration progressing, with synergies expected to add €140 million and supporting segment results.

• Dividend proposal of €0.80 per share, a 14% increase year-over-year, continuing consistent shareholder returns.

• EPS CAGR of 15% since 2022, with diluted EPS at €2.52 (+37%).

Financial highlights

• Group sales reached €17,026 million (+0.5% organic growth), with Adjusted EBITDA up to €1,927 million (11.3% margin).

• Net financial debt increased to €4,296 million, mainly due to acquisitions.

• Free cash flow surpassed €1 billion, €130 million above guidance midpoint.

• Financial charges rose to €225 million, mainly due to the Encore Wire acquisition.

• EBITDA was €1,754 million, including €173 million in net expenses for reorganization and non-recurring items.

Outlook and guidance

• 2025 guidance: Adjusted EBITDA expected between €2,250–2,350 million; free cash flow between €950–1,050 million.

• Scope 1 & 2 GHG emissions targeted for 38–40% reduction vs. 2019.

• Transmission expected to deliver 15%+ EBITDA margin in 2025, with 15%-20% revenue growth from new capacity.

• Power grid margins expected to stabilize at 12%-13% amid strong US demand.

• Electrification and digital solutions forecasted for 3%-5% and 5%-7% volume growth, respectively.