(Reuters) -Italy’s Prysmian on Thursday increased its full-year core profit and cash generation forecasts following its acquisition of U.S. connectivity device manufacturer Channell, after beating expectations for second-quarter results.
Prysmian, the world’s largest cable maker, announced the Channell acquisition in March, in a deal worth up to $1.15 billion, aiming to expand its footprint in North America, its most profitable market.
Channel was consolidated in the group at the beginning of June.
CEO Massimo Battaini emphasized the contribution to Prysmian results from recent M&A deals – also including the $4.2 purchase of U.S.
rival Encore Wire in 2024 – as well as from strong performance so far this year, supported by transmission and power grid businesses.
“We have increased our 2025 guidance, despite the headwinds arising from exchange rates, and we are also well positioned and focused to deliver the medium term targets” set in the group’s business plan, he said in a statement.
Prysmian said it now expected full-year adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at 2.3 billion-2.375 billion euros ($2.63 billion-$2.72 billion), versus a previous forecast of 2.25-2.35 billion euros.
The company also anticipates free cash flow of 1 billion to 1.075 billion euros this year, up from 950 million-1.05 billion euros previously.
Jefferies analysts described Prysmian second-quarter results as “very solid”, with record margin and growth acceleration for the power grid business.
Forex headwinds fully offset the Channell acquisition, but organic business improvement supported a full-year guidance upgrade, Jefferies added.
In the second quarter, Prysmian’s adjusted EBITDA rose 32% year-on-year to 605 million euros, topping a 581 million euro analyst consensus provided by the company.
Net revenue organic growth was 3.2% in the April-June period to 4.883 billion euros, versus a consensus of 4.810 billion euros.
($1 = 0.8740 euros)
(Reporting by Giulio Piovaccari and Gnaneshwar Rajan; Editing by Sonia Cheema and Lincoln Feast.)
