Italy's Prysmian posts quarterly core profit below estimates, but confirms 2026 guidance
Prysmian's Q1 2024 Financial Performance and Outlook
Q1 Earnings Overview
April 30 (Reuters) - Italy's Prysmian reported first-quarter adjusted core profit below market expectations on Thursday despite a margin expansion of 14%, as the world's largest cable maker took a 36 million-euro hit from adverse foreign exchange moves.
2026 Guidance and Long-Term Strategy
Confirmation of 2026 Outlook
The company stuck to its 2026 outlook, with core profit expected in a range of 2,625 million to 2,775 million euros ($3.06 billion-$3.24 billion), and said it looks to benefit in the long term from AI-driven demand tied to data centers.
Adjusted EBITDA and Analyst Expectations
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose to 601 million euros in the quarter, missing analysts' average estimate of 612 million euros.
Segment Performance and Market Opportunities
Transmission and Digital Solution Segments
Momentum was positive for its Transmission and Digital Solution segments with margins growing by 3.2% and 7.4%, respectively, from the same period last year.
CEO Statement on Market Trends
Fiber and Optic Cable Demand
"Global demand for fiber and optic cables is surging, starting from data centers, creating a unique opportunity for our Digital Solutions," CEO Massimo Battaini said in a statement.
Future Growth Initiatives
Prysmian added it is currently negotiating long-term deals with customers for future growth in data centers, especially in the "inside" data center space.
Additional Information
($1 = 0.8576 euros)
(Reporting by Enrico Sciacovelli, Editing by Subhranshu Sahu)
