UPDATE 3-Prysmian sees 2026 profit rise, says tariffs to support market share gains

XTERA COMMUNICATIONS INC

XTERA COMMUNICATIONS INC

XCOMQ

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Updates share performance in paragraph 2

Prysmian forecasts 2026 adjusted EBITDA of 2.63-2.78 billion euros

US tariff effect, largely positive, is excluded from outlook

CEO Battaini says group is ready for M&A, with larger deals expected from 2027

Shares turn positive in midday trading, after falling at market open

By Laura Contemori

Feb 26 (Reuters) - Italian cable maker Prysmian PRY.MI on Thursday forecast higher earnings and cash flow for 2026, excluding a potential boost from U.S. trade measures, after its core profit missed market expectations in the fourth quarter.

The company's shares fell in early trading, but reversed course to trade close to 2% higher by midday local time.

Prysmian has been among the winners of the U.S. tariff regime, as its large U.S. business benefitted from higher duties on imported copper. Unlike its more import-reliant rivals, the Italian group sources the metal locally.

Talking to reporters after the earnings report, CEO Massimo Battaini said higher U.S. import duties would continue to add costs for cables imported from countries such as China, Korea and others.

This means importers will have to raise prices to protect their profits, affecting their competitiveness and allowing Prysmian to gain market share over time, he added.

North America accounts for around 40% of Prysmian's total revenue, and the group manufactures extensively in the United States.

The company forecast adjusted earnings before interest, taxes, depreciation and amortisation of between 2.63 billion euros and 2.78 billion euros ($3.10 billion and $3.28 billion) for 2026, up from 2.40 billion last year.

A company-provided analysts' consensus for 2026 stood at 2.73 billion euros.

It sees free cash flow of 1.30-1.40 billion euros this year, while analysts had estimated it at around 1.20 billion euros. Jefferies analysts said this was a "clear positive" in a generally conservative outlook.

Quarterly adjusted EBITDA grew 20% to 622 million euros, driven by margin expansion in the transmission business, but missed 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," Battaini said in a press release.

He told reporters Prysmian was ready for mid-sized and large acquisitions, with larger deals more likely from 2027. During an analyst call, he added North America, Latin America and Europe remained the priority regions for expansion.

($1 = 0.8475 euros)


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