Italy's Prysmian confirms 2026 guidance, hints at deals with AI hyperscalers
Prysmian's Financial Performance and Strategic Outlook
By Enrico Sciacovelli
April 30 (Reuters) - Italy's Prysmian, the world's largest cable maker, confirmed its outlook on Thursday, as it looked to benefit from upcoming deals with artificial intelligence hyperscalers and other clients tied to data centres, despite missing first-quarter adjusted core profit expectations.
Market Reaction and Share Performance
Shares fell around 6% at market open post-results, before reversing to a 0.6% gain.
AI Hyperscaler Deals and Data Centre Growth
Prysmian said in a statement it is currently negotiating long-term deals with customers for future growth in data centres, especially in the "inside" data centre space.
CEO Insights on Hyperscaler Negotiations
"We are close to striking some long-term deals with hyperscalers," CEO Massimo Battaini added in a media call.
2026 Guidance and Profit Expectations
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).
Potential for Upward Revision
Battaini said during the media call Prysmian is confident to "significantly beat the midpoint" of its guidance, adding it could raise its targets in the upcoming months.
Quarterly Financial Results
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, flagging a 36 million-euro hit from adverse foreign exchange moves.
Segment Performance
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.
Analyst Expectations
Analysts at Jefferies and J.P. Morgan expect margins to accelerate in the coming quarters, as growth drivers such Transmission and data center demand kick in.
Revenue Figures
Revenues came in at 5.22 billion euros in the quarter, beating a company-compiled consensus of 5.10 billion euros.
Dual-Listing and M&A Plans
On the long-standing plans for a dual-listing on Wall Street, Battaini said in the media call that the ideal opportunity would be to combine it with an M&A deal in the U.S.
Exchange Rate Information
($1 = 0.8576 euros)
Reporting Credits
(Reporting by Enrico Sciacovelli, Editing by Subhranshu Sahu and Harikrishnan Nair)
