Prysmian's Strategic Position in Global Undersea Power Infrastructure: A Pillar of the Energy Transition with High-Margin Certainty

Prysmian Group has emerged as a linchpin in the global energy transition, leveraging its expertise in undersea power infrastructure to secure high-margin, capital-intensive projects with long-term visibility. With a EUR 18 billion transmission backlog concentrated in Europe—driven by offshore wind and interconnector projects—and a 40% market share in a EUR 15 billion annual transmission market through 2030, the company is uniquely positioned to capitalize on decarbonization trends [1]. Its strategic pivot toward electrification and digitalization, bolstered by the USD 4 billion acquisition of Encore Wire in 2024, further solidifies its role in addressing surging energy demand in the U.S. and Europe [1].

Undersea Power Projects: A Foundation for Growth

Prysmian’s recent commissioning of two major submarine interconnections in 2025 underscores its technical prowess and market leadership. The 66 kV link between Tenerife and La Gomera and the 132 kV connection between Spain’s mainland and Ceuta are critical for integrating renewable energy into regional grids [1]. These projects, manufactured in Germany, Finland, and Spain, highlight the company’s global production footprint and its ability to execute complex, high-value contracts.

The European Investment Bank’s €450 million investment in 2024 to expand Prysmian’s production capacity for extra-high-voltage submarine and onshore cables further amplifies its competitive edge. This funding, aimed at doubling output at key sites in Finland, Italy, and France, aligns with EU climate goals and ensures the company can meet rising demand for grid modernization [3]. Such capital expenditures, while significant, are offset by the long-term profitability of infrastructure projects, which typically span decades and offer stable cash flows.

Financial Performance: Margin Expansion and Strategic Rebalancing

Prysmian’s Q2 2025 results reflect the strength of its business model. The company reported record EBITDA of €600 million, with a 14.5% margin, driven by robust performance across all segments. The Transmission segment, in particular, saw a 32.4% year-over-year EBITDA increase to €605 million, with margins expanding to 17.1%—a 440-basis-point improvement [1]. This growth is attributed to its backlog of high-margin projects and operational efficiencies.

The Power Grid segment also outperformed, achieving a 15.6% margin, while the Industrial & Construction segment, bolstered by the Encore Wire acquisition, saw margins rise to 14.1% from 10.6% in 2024 [1]. The Digital Solutions segment, enhanced by the Channell acquisition, contributed €63 million in EBITDA with a 16.8% margin [1]. These results prompted Prysmian to raise its 2025 EBITDA guidance to €2.3 billion–2.375 billion and free cash flow to €1 billion–1.075 billion [1].

Strategic Reassessment and Future Outlook

Prysmian’s decision to abandon the USD 200 million offshore wind cable factory in Massachusetts reflects a strategic realignment rather than a retreat from the U.S. market. The company is now prioritizing opportunities in data centers, electrification, and energy demand growth, which align with its broader acquisition strategy [1]. This shift underscores its agility in adapting to market dynamics while maintaining focus on high-margin, capital-intensive projects.

Looking ahead, Prysmian’s EUR 18 billion transmission backlog—entirely in Europe—provides a clear runway for growth. With the global transmission market projected to remain robust through 2030, the company’s expertise in undersea infrastructure and its alignment with EU and U.S. decarbonization goals position it as a key beneficiary of the energy transition [1].

Conclusion

Prysmian’s strategic focus on high-margin, long-term undersea power projects, combined with its financial discipline and operational expertise, makes it a compelling investment for those seeking exposure to the energy transition. Its ability to secure contract certainty through a EUR 18 billion backlog and its alignment with global electrification trends position it to outperform peers in a capital-intensive sector. As the world transitions to cleaner energy, Prysmian’s infrastructure will remain a critical enabler of this shift.

Source:
[1] Prysmian Drops Plan to Build USD 200 Million Offshore Wind Cable Factory in Massachusetts, [https://www.offshorewind.biz/2025/01/24/prysmian-drops-plan-to-build-usd-200-million-offshore-wind-cable-factory-in-massachusetts/]
[2] Earnings call transcript: Prysmian Q2 2025 sees record EBITDA and stock surge, [https://www.investing.com/news/transcripts/earnings-call-transcript-prysmian-q2-2025-sees-record-ebitda-and-stock-surge-93CH-4162151]
[3] EIB provides €450 million to Prysmian to promote European energy transition, [https://www.eib.org/en/press/all/2024-295-eib-provides-eur450-million-to-prysmian-to-promote-european-energy-transition]