Prysmian Targets 64% Profit Surge by 2028 Amid AI and US Expansion Boom
Prysmian Group, the Italy-based global leader in cable manufacturing, announced that it expects its core profit (EBITDA) to jump by nearly two-thirds by 2028, as it seizes opportunities created by the booming AI-driven demand for data centers and continues to expand aggressively in the US market as reported by Reuters.
The company is forecasting adjusted EBITDA of up to $3.40 billion by the end of 2028, a 64% increase from 2024. The company’s outlook incorporates the financial impact of its latest acquisition, US-based Channell Commercial Corporation, in a deal valued at up to $1.15 billion.
Strategic Shift Away from Offshore Wind
Prysmian’s expansion strategy marks a notable pivot from offshore wind. In January, the company canceled plans to build a US offshore wind cable plant, just one day after the inauguration of President Donald Trump, who has been outspoken against wind energy. According to Reuters, a source close to the company emphasized the decision was based on weak market prospects rather than political reasons.
Despite the cancellation, Prysmian reaffirmed its commitment to US growth, underlined by its acquisition of Channell, a manufacturer of enclosures, connectors, and fiber-optic management systems—products that complement Prysmian’s digital cabling portfolio.
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Riding the AI and Electrification Wave
CEO Massimo Battaini highlighted that the growing role of AI and digitalization in the economy positions Prysmian to capitalize on soaring infrastructure needs. He noted that data centers are projected to account for 14% of US electricity demand by 2030, up from just 6% today.
The company also announced a $245 million investment in US facilities to boost the production of medium-voltage cables, further anchoring its footprint in what is now Prysmian’s most profitable market.
M&A Momentum and Listing Plans
Reuters reports that Prysmian has been on an aggressive acquisition spree following last year’s $4.2 billion purchase of Encore Wire, another US-based cable maker. Battaini confirmed that the company intends to use approximately $2.6 billion in cash by 2028 for future acquisitions and shareholder returns, including $1.1 billion in planned dividends between 2025 and 2028.
However, the company is pausing plans for a potential secondary listing in New York, citing current market volatility and its focus on completing the Channell transaction. Battaini said Prysmian still sees strategic value in a US listing despite the pause.
Following news of the listing delay, Prysmian’s shares in Milan fell by 5.4%, reflecting investor sensitivity to capital market moves. Nevertheless, analysts view the company’s sharpened focus on AI infrastructure and US expansion as a strong long-term strategy.
The announcement comes as global players like OpenAI, SoftBank, and Oracle plan to jointly invest $500 billion in US AI infrastructure.
