Q2 2024 Prysmian SpA Earnings Call Transcript
Key Points
- Prysmian SpA (PRYMF) reported a strong EBITDA performance, reaching EUR870 million, with significant growth in the second quarter compared to the previous year.
- The company achieved an 11.1% EBITDA margin for the first half of 2024 and generated a robust free cash flow of nearly EUR900 million over the last 12 months.
- Prysmian SpA (PRYMF) successfully completed the acquisition of Encore Wire, integrating it swiftly and aligning commercial forces to avoid market disruption.
- The transmission business saw a 10% organic growth and a leap in EBITDA from EUR116 million to EUR150 million in the first half of 2024, with a target to reach a 16% EBITDA margin by next year.
- The company made significant progress in its sustainability goals, achieving a 36% reduction in Scope 1 and 2 CO2 emissions and increasing the recycled content in its cables from 12.5% to 15%.
- Organic growth was slightly negative at 3%, impacted by the digital solutions business, which is still recovering from a tough comparison with the first half of 2023.
- The electrification segment faced some one-off issues, including VAT adjustments and higher LME values, which affected the EBITDA margin.
- The industrial and construction segment showed stability in EBITDA but experienced margin dilution due to one-off impacts and incremental LME values.
- The specialty business unit, despite a growing EBITDA margin, faced a negative organic growth due to varying levels of mix and country-specific factors.
- The digital solutions segment, although rebounding in the second quarter, still suffers from a low order intake in the first half of 2023, affecting overall performance.
Good morning, everyone. Thank you for attending this second-quarter call for 2024. We move directly to the key KPIs for the first half.
You see a stronger performance in EBITDA, EUR870 million EBITDA with a great progression between quarter one, where we had some gap over quarter one '23. While in quarter two, as you see on the right chart, right-hand side chart of the table, a great increase over the same quarter two of 2023. And driven, as you say, by the strong performance in transmission, as you see from the color code in the bar chart, a stronger leap improvement in transmission and also in power grid, while electrification and digital solutions have performed slightly better than the expectation, overall, delivering this upside over last year.
We consolidated the 11.1% EBITDA margin for the whole company as a first half EBITDA margin and a stronger free cash flow last 12 months at almost EUR900 million. We continue to remain very focused on the CO2 emission, confirming a 36% achievement in Scope 1
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