In This Article:
Release Date: May 08, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Prysmian SpA (PRYMF) reported a strong start to 2025 with an EBITDA of 527 million, significantly ahead of last year.
-
The company achieved an impressive organic growth of 5%, driven by transmission and supported by stability in Power Grid and growth in digital solutions.
-
Free cash flow stood at 1 billion for the last 12 months, indicating strong cash generation.
-
Prysmian SpA (PRYMF) is on track to achieve its ESG target of a 38% reduction by 2025, with a current reduction of 37%.
-
The company confirmed its net zero target by 2035 and reported a significant improvement in the recycled content of copper, up by 300 basis points from last year.
Negative Points
-
The company faced declining organic growth in the US due to tough comparisons from last year and bad weather impacts.
-
There is a wait-and-see situation in the US market due to current tariff dynamics, affecting the IUC business.
-
The industrial construction segment showed flat organic growth, with a 35 million shortfall compared to the previous year.
-
Prysmian SpA (PRYMF) experienced a temporary negative effect on net income due to the negative value of metal derivatives.
-
The company anticipates potential headwinds from forex exchange rates, which could impact future guidance.
Q & A Highlights
Q: Can you provide some color on the performance of the Power Grid segment, particularly in medium voltage versus HVAC, and any differences between the US and Europe? A: The organic growth in Power Grid was slightly negative due to a strong demand in the previous year. Medium voltage demand remains strong, prompting significant investment in the US. The "wait and see" situation was due to bad weather affecting installations. In Europe, demand varies, with strong demand in North Europe and the UK, but weaker in France. (Unidentified_1)
Q: What is the impact of moving to margin in constant metal prices, and how does it affect your targets for transmission and grid margins? A: The impact on transmission is minimal as it involves less metal. We maintain our target of 18-20% for transmission, with a slight increase for constant metal prices. For the INC space, the differential is higher, with a couple of points added for standard metal prices. (Unidentified_1)
Q: Have you seen any increased traction from distributors in the US electrification market after the Eco deal? A: Yes, we have geared up our commercial organization to sell a full range of products, not just Anchor Wire products. Our service level has been impeccable, with 24-hour delivery for most products, which has been well-received by customers. (Unidentified_1)