MILAN (Reuters) – Prysmian sees its core profit rising around 34% through 2027 as the world’s largest cable maker seeks to benefit from a global push towards cleaner energy and digital transformation, by building on its existing businesses.
Presenting its first-ever strategic plan on Thursday, the Italian group said the cable industry was increasingly strategic amid long-term market trends of increased renewable generation, growing electricity demand, expanding power grids and massive data growth.
This will help Prysmian increase its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to around 2 billion euros ($2.1 billion) in 2027, from 1.49 billion euros last year, the company said in a statement.
“Prysmian is uniquely placed to benefit from the opportunities presented by the structural changes arising from the convergence of the energy transition and digital transformation,” Chief Operating Officer Massimo Battaini said in a statement.
After having grown through acquisitions, with the purchase of Netherlands-based Draka in 2011 and U.S.-based General Cable in 2018, Prysmian now plans to grow by expanding capacity, funded through its own cash generation, the group said.
Prysmian sees its annual cash flow growing to between 0.9 billion and 1 billion euros in 2027 from 559 million euros last year.
Battaini has been anointed to become CEO from next spring, inheriting the role Valerio Battista has held since 2005, when Prysmian was created through the spin-off and sale of Pirelli’s former cable unit.
($1 = 0.9505 euros)
(Reporting by Giulio Piovaccari, editing by Gianluca Semeraro and Sonali Paul)
