Prysmian SpA (BIT:PRY) reported Q4 results with adjusted EBITDA missing analyst expectations by 2%, totaling €622 million versus the consensus of €635 million. Revenue held steady at €4,966 million, reflecting 4.3% organic growth. The Power Grids and Specialties segments faced margin pressures, while the Transmission segment achieved a 20.9% margin, surpassing its 2028 target. For 2025, the company posted record adjusted EBITDA of €2,398 million and free cash flow of €1,171 million, up 15.8% year-over-year.

The EBITDA miss was attributed to metal premium pressures in Power Grids, where margins fell to 12.1% from 15.4%. Digital Solutions more than doubled its adjusted EBITDA to €75 million following the Channell acquisition. Despite challenges, the Transmission segment drove 8.4% organic growth. Backlog stability at €17 billion signals sustained demand for infrastructure projects.

Prysmian raised its 2026 adjusted EBITDA guidance to €2,625 million–€2,775 million, slightly below the €2,725 million analyst consensus. However, free cash flow guidance of €1,300 million–€1,400 million exceeded expectations by 13%. The company also proposed a 13% YoY dividend increase to €0.90 per share, underscoring confidence in long-term profitability.

Massimo Battaini, CEO, framed the results as a milestone under the ’Accelerating Growth’ strategic plan. While near-term margins face headwinds, the Transmission segment’s performance and robust free cash flow position Prysmian to meet mid-term targets. Investors should monitor execution in high-margin segments to validate growth trajectories.