Prysmian sees higher 2026 earnings after slight miss on Q4 core profit

By Laura Contemori

Feb 26 (Reuters) - Italian cable maker Prysmian PRY.MI forecast a higher 2026 profit on Thursday, after margin expansion in its transmission business drove 20% rise in fourth-quarter core earnings.

Quarterly adjusted earnings before interest, taxes, depreciation and amortisation rose to 622 million euros ($735 million), slightly below analysts' average estimate of 635 million euros.

"Building on this, the leadership position of our Transmission business will be further enhanced thanks to the agreements to acquire Xtera XCOMQ.PK and ACSM," CEO Massimo Battaini said in a press release.

J.P. Morgan analysts said in a note the fourth-quarter results were mixed, with cash flow coming in better than expected despite the core profit miss.

Prysmian forecast 2026 adjusted EBITDA in a range of 2.63 billion to 2.78 billion euros, up from 2.40 billion last year. A company-provided analysts' consensus stood at 2.73 billion euros for this year.

It sees free cash flow of 1.30 billion to 1.40 billion euros this year, ahead of the consensus of around 1.20 billion euros. Jefferies analysts said this was a "clear positive" in a generally conservative outlook.

The outlook does not include any potential effects from U.S. import tariffs, Prysmian said.

The company's large U.S. business has been benefitting from higher duties on imported copper, as it sources the metal locally and passes on higher prices to customers.

North America accounts for around 30% of Prysmian's total revenue.

($1 = 0.8462 euros)