Italian cable maker Prysmian has lifted its full-year profit and cash flow targets after a stronger-than-expected third quarter and an earlier-than-anticipated boost from its recently closed $3.8 billion acquisition of Atkore. The company also said it will invest more in US manufacturing capacity, signaling confidence that demand for electrification and data-center infrastructure will keep growing.
Prysmian reported third-quarter adjusted EBITDA—a measure of profit before interest, taxes, and certain one-off items—of €851 million, up 32% from a year earlier and ahead of the €793 million that analysts had expected. Revenue rose 13% to €6.42 billion. The company attributed the strength to robust demand tied to electrification and the buildout of data centers, which require large amounts of cabling and power infrastructure.
After closing the Atkore acquisition earlier this month, Prysmian raised its full-year adjusted EBITDA target to €3.075–€3.125 billion, up from a previous range of €2.8–€2.9 billion. The company also increased its free cash flow outlook to €1.75–€1.85 billion from €1.65–€1.75 billion. Free cash flow is the cash left over after running the business and funding capital expenditures—money that can be used to pay down debt, return to shareholders, or reinvest.
Why the cash flow upgrade matters
For investors, the higher free cash flow guidance may be more significant than the headline profit upgrade. Acquisitions often come with debt, and the speed at which a company can generate cash determines how quickly it can reduce leverage. A stronger cash flow outlook suggests Prysmian expects the combined business to convert a larger share of earnings into actual cash, which could ease concerns about the financial strain of the Atkore deal.
“The market will be watching whether Prysmian can integrate Atkore smoothly while maintaining disciplined spending,” said a note from analysts following the results. “The raised cash flow target is a positive signal that the deal is already contributing.”
Prysmian’s move echoes a broader trend among industrial companies that are benefiting from the global push to upgrade power grids and build new data centers. Tech-driven demand has been a key driver for many suppliers, and Prysmian is positioning itself to capture more of that growth.
Expanding US capacity
On the investment side, Prysmian said it will add a second rod mill at the Texas plant of Encore Wire, its US unit. The expansion is part of a €700 million plan to increase supply for US industrial and construction customers. Rod mills produce copper and aluminum rods used in cables, and adding capacity should help Prysmian meet demand without relying on external suppliers.
The US market has become a focal point for infrastructure spending, driven by government incentives and private investment in renewable energy, electric vehicles, and data centers. Prysmian’s decision to expand in Texas reflects confidence that this demand will persist.
What investors should watch next
The next major checkpoint for Prysmian is its capital markets day, scheduled for the first half of next year. At that event, management is expected to provide more detail on integration plans for Atkore and how quickly the combined business can scale. Investors will also be looking for evidence that the early contribution from Atkore and the US expansion can coexist with disciplined spending, rather than stretching the balance sheet.
For everyday investors, the key takeaway is that Prysmian is seeing strong demand for its products, and the Atkore deal appears to be off to a good start. However, the company’s ability to manage debt and execute its expansion plans will be critical to long-term returns. As with any acquisition, there is always risk that integration challenges emerge or that demand softens.
Prysmian’s raised outlook is a positive sign, but it remains to be seen whether the company can sustain this momentum. The capital markets day will be a key event to watch.
