MILAN (Reuters) -Prysmian said on Thursday it sees cash generation at the upper end of its forecast as it confirmed its 2023 guidance and posted 14% higher core profit in the first nine months, supported by "solid improvement" in its project business.
Chief Executive Officer Valerio Battista said in a post earnings call cash generation was better the expected, while CFO Pier Francesco Facchini added that a free cash flow of 650 million euros ($696 million) this year was a "reachable target".
The world's largest cable maker on Thursday reiterated a 2023 full-year forecast for a free cash flow in the range of 550-650 million euros and for adjusted earnings before interests, taxes, depreciation and amortisation (EBITDA) of 1.575-1.675 billion euros.
"On EBITDA, from what we see now, we expect to be around the mid-point of the forecast range," Battista said.
The company last month unveiled its first-ever strategic plan, aiming to boost its core profit by around a third by 2027, as it benefits from global energy transition, electrification and digitalisation trends.
In the January-September period, Prysmian's adjusted EBITDA amounted to 1.286 billion euros, broadly matching a company-provided analysts' consensus of 1.276 billion euros.
The margin on adjusted EBITDA rose to 10.9% from 9.4% in the same period last year.
Milan-listed shares in Prysmian erased losses after results were published, and were up 1.2% by 1625 GMT.
Battista said the high quality of Prysmian's order backlog allowed good visibility on its future growth and results, and that its execution of orders "paves the way to achieving the targeted yearly results".
Prysmian's project business, which supplies cabling for land and submarine power interconnections and offshore wind farms, has been awarded new orders worth 13 billion euros since the beginning of the year.
Its order portfolio has reached the record level of around 20 billion euros.
($1 = 0.9334 euros)