...- Italy-based cable manufacturer Prysmian SpA's operating performance proved relatively resilient in the first nine months of 2024 and exceeded our base-case margin assumptions. - Under our revised base case, we now expect an S&P Global Ratings-adjusted EBITDA margin of 10.4% in 2024 (9.6% in 2023), including a six-month contribution from U.S.-based cable manufacturer Encore Wire Corp. The margin will improve to about 12% in 2025, when Encore Wire will have contributed for a full year. - At the same time, Prysmian's credit metrics remain weak for the current rating, after its debt-funded acquisition of Encore Wire closed in July 2024 for 4.1 billion. However, thanks to Prysmian's incremental EBITDA expansion and higher free operating cash flow (FOCF) than we anticipated, we now expect that Prysmian's adjusted funds from operations (FFO) to debt will reach about 25% in 2024, before improving to 35%-40% in 2025 and approach 50% in 2026. - Prysmian recently approved a financial policy stipulating...
