Thank you. Good morning, everyone, and welcome to the earnings call for quarter one '26.

We are very excited to share our quarter one result that is well ahead of our expectation. When I say well ahead, I mean almost €50 million upside over what we budgeted for quarter one '26.

What is mostly settling is that the growth in EBITDA between quarter one '25-'26 has been mainly achieved organically. If you take this €80 million increase, and you harmonize and neutralize the forex, this will lead to €120 million growth in EBITDA, out of which Channell representing only €40 million of this €120.

Also outstanding is the EBITDA margin in the quarter, 14.2%, 1.1 percentage point higher than what we recorded for last year. With this set of results, can confirm that we are well on track to achieve the 2028 Capital Markets Day target of €3 billion and plus, and also very confident to be able to hit the upper part of our guidance for 2026, namely well above the €2.7 billion 2.7 billion of the midpoint.

Before moving to the usual business-by-business review, I'd like to share with you some exciting news about the further expansion that we can have in the data center space through striking long-term agreements with hyperscalers. These agreements are going to be finalized in the coming weeks, and instrumental and fundamental to achieving this agreement is our footprint in terms of products and assets that we have in US.

We are among the few who has a fiber plant located in US with multiple optical cable plants located in US. We also very satisfied being the only player worldwide that can offer data solution and power solution to hyperscalers.

The demand has gone through the roof in terms of fiber and optical cables, not only coming from a strong data center expansion, but also coming from the famous and well-known case of military fiber utilized for drones application. We are well-positioned to take advantage of the growth of the market in terms of volume, profitability, and long-term supply agreement will confirm how sizable this opportunity is for Prysmian.

Being unique means also that we participate in all the steps of the data and power flows of cables to feed optical solution and electricity to data center. You see that all our business, Transmission, with submarine telecom and submarine power; Power Grid, with medium-voltage enhancement of the grid; electrification cables; and finally, digital solution cables are intercepting, will intercept opportunity with data center.

The last one that we want to capture is to be a player not only with the long-haul connection connecting data center campus and cluster of campus with other cluster of campus, but to be a player also inside the building, inside where the racks, the servers are, which is where most of the volume of cables and fiber is going to be deployed due to the AI expansion. Let me move to the business review.

Transmission supported the quarter one with €23 million upside over quarter one 2025. The organic growth is not that visible.

In fact, we had flattish organic growth, but made of two components: strong growth in the cable space, the capacity coming online bringing additional volume to this business. We had slower installation, third-party installation quarter one due to the phasing of specific projects.

Bear in mind that we have also a tough comparison to quarter one '25, where we had a 60% organic growth in that quarter. Look at the EBITDA margin.

We are consolidating for the seventh quarter in a row 20%-plus EBITDA margin for this business. I confirm that we will see between 20% and 21% EBITDA margin in 2026 full year, which is well ahead of the target we set for the Capital Markets Day, which was 18 arranged between 18%-20%.

More importantly, I confirm our commitment to achieving at least €170-€180 million incremental EBITDA in 2026 over 2025, confirming that we are well ahead of our trajectory for achieving the €1 billion goal for 2028. Moving to Power Grid, we have an exceptionally and extraordinarily high organic growth driven by volume and price.

In terms of EBITDA margin, you'll see what we anticipated last quarter. We still have Midwest premium and cost inflation that we are passing on to the market because we have a formula across all the agreements.

Bear in mind that those formulas are structured in a way that give us an upside only after a certain time lag. There is a time lag for the implementation of the formula, whereby the cost increase today in the market, in our production, is something we can pass on to the market in basically 3 months.

This, for the time being, is preventing us from restoring the 15% EBITDA margin that we achieved in the past quarters. Don't worry, the market is buoyant in Power Grid, US and Europe.

There is no price pressure at all. Also, should the cost inflation soften in the coming quarter, you will see the positive benefit of this time lag related to the cost-price adjustment formula.

Moving to I&C, here we had significant performance in terms of EBITDA, €196 million in the quarter, which is a €20-plus million over last year. If you add the forex impact that is €17 million, this is a €40 million increase quarter-over-quarter.

North America drives the growth, certainly with non-residential business, and also, and mainly, I would say, with the data center expansion. We have been reported as the number one leader, number one player in electrification data center in quarter four last year and quarter one 2026.

The EBITDA margin, as you see, at 13% is well ahead of what we had in quarter one 2025. Specialties, we see a little rebound in EBITDA and EBITDA margins.

We finally disposed the two factories that we had in Mexico in quarter one '26. There are two more factory to get rid of in the coming quarters.

We still suffer the softening of the automotive business for the remaining market, and elevator in US is particularly down due to the, I would say, continued crisis in the residential market, and some oil and gas softening is what caused this €10 million reduction in EBITDA over last year without considering that €4 million out of the €10 million came from the forex. Digital Solution is our new driver of growth.

We hit a 20.6% EBITDA margin in the quarter. Now we see head-to-head competition between the margin of Transmission and the margin of Digital Solution.

Let me remind you that before the Channell acquisition, the best margin seen in this space was 14.5%. We are now running at a different level of profitability.

The quarter in itself doesn't show yet the opportunity and the upside associated to hyperscalers. It is €88 million versus €42 million of 2025.

Forex hit the results by 7, while [YOFC?] was in '25 for €4-€5 million.

That is not the case for '26. You see this number growing significantly in the coming quarters on the back of this pricing power that has increased, more volume opportunity, and the long-term agreements.

I'd like to conclude the section of the business review and overall company view with two outstanding breakthroughs in terms of innovation. You see on the left all the social and climate and innovation KPIs.

In terms of innovation, what we've done in this quarter is amazing. We delivered the first cable able to run 20% more power than the standard 525 kV solution.

This will give customer unique opportunity to invest in a connection whose cost is similar to the original 525 technology, allowing them to transmit more power. The cost per megawatt transmitted is enhanced by 20%.

Big contribution to make the energy transition financially more sustainable. Also we created unique in the world one cable, aluminum metal cables, whose carbon content is negative.

Vis-a-vis this standard regular cable, the save of carbon that we generate with this production outweighs the carbon included in the production itself. We have a negative footprint in the sense that we create negative carbon emission with this cable.

Solution that will be certainly well appreciated by those among our customers are more keen in having green solution, and those are hyperscalers by default. Let me now hand over to Francesco for more details in our financial results.

Thank you, Massimo, and good morning to everybody. Let me start from the top line.

As Massimo said, very good growth, 5% organic growth, with revenues growing up to €5.2 billion and a very remarkable growth, particularly in Power Grid, in I&C, and in Digital Solution. This 5%, by the way, has been reached despite, as Massimo commented, a flattish organic growth in the Transmission, which is only temporary, is only due to phasing of the installation activities.

In Transmission, we see a very strong ramp-up both of the top line and even more, I have to say, the EBITDA in the coming quarters. Adjusted EBITDA saw a good expansion of the margins.

You see a standard metal up by 110 basis points from 13.1% to 14.2%. Here the important drivers are certainly in Transmission and certainly in Digital Solution, including the accretion coming from the inclusion and the consolidation of Channell.

As Massimo commented, some temporary adverse effect on margins of Power Grid due to the lagged pass-through of the cost material increases and the Midwest premium increase that we are very confident and we expect to recover starting from the second quarter. You see the bridge from Q1 '25 to Q1 '26.

As I said, important to remark the very good growth of Transmission. This growth is definitely expected to accelerate a lot in the coming quarters.

This plus-€23 million will be much more sizable starting from Q2, Q3, Q4, in line with the indications that Massimo gave for the full year. Power Grid is basically flat as a result of strong growth and the temporary margin adverse effect that we have commented, a very good progression of I&C in particular, and an outstanding result of the Digital Solutions as a combination of the inclusion of Channell, but also the very strong organic growth in the business.

Unfortunately, quite adverse forex effect for €36 million, close to €40 million. Even in this case, this forex effect is expected to decrease, to attenuate in the coming quarters because you remember that last year, the dollar was very strong in the first quarter, then started to weaken progressively throughout the quarters.

We will have a much lower effect than this €36 million in the coming quarters. I have to say that it was also an outstanding Q1 in terms of net profit, up to almost €250, also in this case, definitely above our expectations.

This is an excellent start to achieve our targets also in terms of earning per share for the full year. We can move to some other pretty outstanding achievement that we had in the first quarter.

I like to comment once again, definitely above our expectation, which is a free cash flow last 12 months very close to €1.2 billion and even above the already outstanding free cash flow that we had achieved in full year 2025, which was €1,170 million. You see that also the deleverage of our net debt is massive.

We go from March '25, which was €4.9 billion, down to €3.8 billion, despite having executed acquisition, you see the first bar, for €1.2 billion, obviously, mainly funded by the issuance of the hybrid bond for, say, €1,943 million. This massive deleveraging was achieved through the last 12 months free cash flow, but as you see, also from the disposal, in particular, of our YOFC stake.

We target a net debt by year-end, let me say, between €2.6-€2.7 billion, and that's a very strong message that I want to give because it means that year-end, our leverage will be below one, in principle. This is definitely faster than we thought, for instance, at the Capital Markets Day last March in New York.

Excellent. Back to Massimo.

Thank you, Francesco. Let me complete the presentation with some important remarks.

We have strong driver of growth coming from Digital Solution and Transmission, with the number we mentioned before. Power Grid remains solid in volume.

We will see the rebound in profitability in the coming quarters as the time lag will allow us to increase price more effectively in the market. This Digital Solution opportunity is a big one.

You cannot imagine how many customers reach out to us to ask whether we are available to expand capacity to support long-term deals, and we are working hard to make this happen in the coming weeks. This will definitely allow us to add another important driver of growth to the North American growth and the Transmission growth that we had already started and showed in the last few quarters.

For the time being, we confirm the guidance, of course, with a much positive view about where we will end up with in terms of guidance, but we have to wait until July to see the full power of the upside that we have in hand and to confirm projection opportunity that we see coming in the next quarters. Positive also the free cash flow guidance, and we might see upside also there.

Thank you for your time. We can now move to the Q&A session.

Hi, good morning, all. Thank you so much for taking my question.

I have three questions if possible, I will ask them one at a time to make it easier. First just wanted to start on fiber, and to ask you to detail the dynamics we should expect over the coming quarters because obviously we have seen spot fiber prices raising significantly.

You do produce a large quantity of your own fiber and the inflation, I guess, on the inputs is a lot smaller than what we see on the spot. You have frame agreements.

How long will it take until we kind of start seeing spot reflected on your frame agreements? What is the tailwind by the fact that you produce your own fiber?

How should we think about margin expansion over the rest of the year and into 2027?

Thank you, Daniela. We will see the benefit of the long-term agreement over time because we will lock capacity, and part of the capacity is still not in place.

We have to expand the capacity. The vast majority of volume uptake will happen in '27 and beyond.

In '26, you will see certainly significant margins improvement as a result of the fact that the current fiber price in the market is at least $10 per fiber kilometer. Only 6 months ago, it was half of this, the price in the market.

We are renegotiating all our agreements. We are shifting volume from low-profitability customer to higher-profitability customer, among the higher-profitability customer there are hyperscalers.

We're already significant players in the long-haul connection between data center, we already have relevant partnership and connection with this hyperscalers, not really related to volume capacity, but really related by innovation capabilities. They need very high-density fiber for the long-haul distance.

This trend, this strong relationship, is what we are leveraging to add volume commitment and pricing improvement across the board of our solution in the telecom space. We will see some volume uptake in quarter two, quarter three, quarter four as we unlock some of the short-term capacity.

We will see certainly pricing benefit in the coming quarters.

Got it. Thank you.

Then switching to electrification and to the topic we've been talking since the summer about potentially added the copper derivatives on the Section 232. Two points, I guess.

Do you still think that will eventually come, and when? Do you see any shifts in competitive positioning from the recent kind of changes on Section 232?

I think we don't count much on the copper derivatives, not because they will never happen, they might happen, but there is not much import of copper in US. What has happened, on the contrary, in the last 3 months, there's been a significant change in the 232 tariff for aluminum cables.

Before mid-February, the rule was importers had to apply 50% 232 tariff on the metal content of those cables. Because the metal content of the cable were declared by importers, there has been a lot of cheating on this one, a lot of way of circumvent this rule by declaring less copper content and pay less tariff.

Now the administration, in light of this, and in order to fix this situation, shifted from 50% applied to metal content to 25% applied to the cable value. The cable value is transparent, is something that you had to declare at customs.

I think now we will see some real benefit coming from tariff because those players will be charged with 25% across the whole cable value in full transparency. There will be no way to circumvent the rules.

I think we can say mildly because these are first signal coming from the market, that in April, we've seen pricing margin improvement in aluminum building wire space that we haven't seen the last 6 months.

Got it. Thank you.

Then just finally, I guess, several things that you have been mentioning for a while, like Transmission margins, now the new contracts in digital, there are kind of things that weren't necessarily there when you last CMD. As you're thinking on when it would make sense to revisit the 2028 targets, what's changed versus the last quarter?

In our ideal world, we would like to review the Capital Markets Day target for 2028 in combination to the next M&A. Of course, should not we land any M&A for the next 2 years or 1 year and a half, we will have to review the Capital Markets Day target anyway.

We are pretty confident that the original plan is what we will be able to stick to. In the next 12 months, an M&A will give us the opportunity to revisit 2028 target as well as to provide a long-term target like 2031.

That will be our approach, Daniela, in this regard.

Thank you very much.

You're welcome.

Hi. Morning, all.

Thank you for taking the questions. I'll maybe ask two.

Could we start on the hyperscaler long-term contracts that you've mentioned, and could you update us in terms of what the sort of time frames these could be over, which you're speaking on currently with your partners? Could you also confirm that this would be across your portfolio of low- and medium-voltage cables alongside fiber, or should we just expect it to be within fiber optics?

Maybe I'll ask the second question after that. Thanks.

Thank you, Chris. This is an opportunity that will be deployed in Digital Solution.

The rest is already covered by agreement and by specific projects in the electrification Power Grid space. This is specific to Digital Solution as an opportunity.

The time frame could be something between 3 to 6, 7 years duration of contracts, with conditions that I cannot disclose, of course, until we sign a contract, which are supporting significant expansion of capacity in our fiber and optical cable footprint in US. These are the ideal conditions that we had, mirror from Transmission business, where down payment helped us fund and finance investment in expansion capacity.

This would be the same model applied to optical opportunity within Digital Solution space.

Sure. That makes a lot of sense.

As a follow-up, could you just confirm currently what your sort of contract duration is in fiber, if these contracts are going from three up to 7 years, what is the current level? Thanks.

Now

in the current market, we play a role in fiber-to-the-home and long-haul connection for data center. We have some 2-, 3-years agreement in terms of frame agreement with fiber-to-the-home customers.

We have no long-term commitment with any of the hyperscalers in the existing setup. It's a significant shift in terms of customer commitment, what we see today and what we're going to see as an opportunity for the coming years, from spot business or project-oriented business to long-term agreement with solid commitment to withdraw the volume when the capacity will be coming online.

That's really helpful. Thank you.

The second question was on I&C margins in Q1 coming down after Q4 levels. Could you maybe comment in the US, you saw good organic growth in the geography.

Could you comment if you were seeing any pricing pressure in the low-voltage vertical? If so, is there any way you can alleviate that for the rest of the year?

Is M&A going to be a key target for you in this segment in the US for this year? Thank you.

No, thank you for your question. No, in North America, we've seen the opposite.

The margin in quarter one were 1 percentage point up on the margin that we reported in quarter four. The market in US is particularly stronger, continue to remain stronger.

Again, driven by this rebound in non-residential, also supported by this fantastic rate of growth in data center. Don't forget that to be a player in data center space, and we are the number one now in US, you need scale and service.

We have all the conditions in place to benefit from these two important features. We don't intend to expand with M&A our capability in US in the I&C space.

We're already the number one. What we will do is organically will add more capabilities to this plant in Kingman.

That we talked about medium-voltage expansion of capacity, which is complementary to the low-voltage capacity that we have already in this location. We will become even more relevant by adding the rest of the portfolio that is needed to electrify data center space.

Thank you. Just as a follow-up on M&A, in the US, it's your key target geography, as you've highlighted before, but we shouldn't expect that this will be across the low voltage, and we shouldn't expect potentially across medium voltage.

Am I right in understanding that? Thank you.

Sorry,

because we can't really tell much about the opportunities. I think the opportunity is in the electrification space, but I cannot be more specific in this, but in terms of cable, we have exactly what we need.

Maybe there will be something else beyond cable that can help us complement the cable portfolio and sell more solution also in the electrification space. Forgive me if I cannot go beyond this because we are interacting with different targets, and I don't want to disclose this to the market yet.

Completely understand. Thank you so much.

Thank you, Chris.

Thank you.

Thank you very much, everyone. Good morning.

Hope you can hear me well. I have a few questions.

The first is around Digital, just looking to understand the potential scale of the ramp-up in fiber capacity you may be considering. Is there any sort of indication you can give us?

Is your strategy going to be to fulfill these longer-term supply agreements with data centers, or could you also build some further spare capacity, in particular, just thinking about you've highlighted the potential of submarine telco, which is potentially coming from very small volumes, but you're building up your capabilities there. Thank you.

The capacity allocation to data center opportunity will be twofold. In the short term, we redirect existing capacity from low-profitability customer to hyperscalers because we want to bridge the 2, 3 years time that we need to bring a new capacity online.

The new capacity addition will be in the range of 40% increase of what we already have in the cable optical space worldwide. This probably give you enough information to appreciate the scale of the opportunity.

Submarine telco is what we are strengthening with the Xtera. Now we can be a provider of long-haul connection, optical submarine connection, and this is another way to interact with hyperscalers and support the growth of hyperscalers.

Now we see that data center market expansion relies a lot on Prysmian thanks to our global and comprehensive portfolio products and solutions.

That's clear. Thank you very much.

My second question is a follow-up on Power Grids. You've guided for an improvement in the second quarter.

Could you maybe give us a little bit more flavor on how much you expect the margin to improve in the second quarter? Is that already at the 15% or so standard metal price margin?

Is it a little bit below that, and then improving to that level in the second half? Thank you.

Thank you, Vivek. There is a catch-up situation due to the formula.

No, this 3, 4 months, 2 months time lag, depending on different contracts, allow us to increase the price, but if the cost continue to increase, you will see the benefit of the price increase in the coming quarters. We expect, as we stand today, to have at least 100 percentage point increase in the margin of quarter two vis-a-vis quarter one.

Things can do even better should we see a slowdown in inflation rate, or at least this will be the minimum baseline improvement, 100 basis points over quarter one. More importantly than focusing on the specific margin by quarter is that there is no pricing pressure in the market at all.

There is no one that is willing to renegotiate existing contracts to reduce the price. There is no softening in demand because both in Europe and North America, these two markets are remaining strong market in terms of demand.

Europe in power distribution and high-voltage, North America, again, medium-voltage power distribution and high-voltage. We will restore the 15% EBITDA margin, but more importantly, we would like to show continued growth as we've shown in quarter one in terms of organic growth.

That's clear. My last is a follow-up on that point because the comparables for organic growth get stronger as you go through the year.

By the second half, you were already growing double-digit in Power Grids. For how long are we likely to sustain these levels of organic growth?

How do you see the mid-term growth as you go forward? Thank you.

I think, part of the organic growth is volume-related, part of the organic growth is price-related, and despite you are correct, last year second half, we had significant organic growth, but we still see this double-digit growth for the remainder of the year driven by volume and price. Don't forget there will be additional capacity coming on stream.

Also, look at in quarter one '27, there will be a significant impact of additional capacity in the medium-voltage space, partly in I&C, partly in Power Grid. Certainly, we see continued growth in the coming quarters as we expand capacity, and as the market remain buoyant in terms of prices.

Very clear. Thank you very much.

You're welcome.

Yes, hi. Good morning.

I got three as well, and I'll ask one at a time. The first one is also on Digital Solution.

Maybe is there any way to quantify how large these investments going to be given when we look at some of your competitors, they're spending north of billion mark. Then could you also talk about the payback period for those investments, and how shall we think about the phasing of incremental revenues in the next couple of years?

That's the first one.

Thank you, Akash. Very sensitive information, but because we would like to sign the agreement first and then to disclose the size of the revenues upside and EBITDA upside and all the rest.

More or less, I can tell you that the size of investment is massive. Is as you also said before, is north of the €1 billion euros investment.

This across the fiber space with the specific investment in US, and the optical cable plants, three of plants out of four in US will be affected by this expansion, and one European plant will also be affected by this expansion. Payback varies.

It depends on the size of the down payment that is still under negotiation. Could be very short, could be, worst case, 8 years, but something that will anyway create value for the company in terms of additional EBITDA, in terms of net present value of those investments.

We will never commit to expansion that large without having a solid customer commitment and the confidence that the payback and the IRR are in the right place.

When it comes to funding these investments, is it fair to assume that like we saw in Transmission early on, not just at Prysmian, but also at competitors, that customer gave nice down payments that act as a funding instrument for those expansion? Could that possible with hyperscalers this time around?

It is possible with our customers. I cannot name the customers, but it's exactly what we are targeting.

This is exactly what has been offered. This is a copy-and-paste of the model that we applied to the Transmission space successfully in the last 5 years.

The market in Digital Solution allow us to achieve the same. Bear one thing in mind, that in US, those customers want to have US fiber, and we have a US plant.

We are unique in this sense alongside Corning and OFS Furukawa. We are among the three that can benefit from this opportunity because of our existing footprint.

Thank you. My second one is for Francesco.

When I look at your P&L, nonmonetary items in this quarter was just €2 million against €72 million, there's a significant reduction there. Can you talk about what is driving that, and what does that change for full year in terms of what shall we expect the amount?

Thanks, Akash. The only driver of that is the fair value of the metal derivatives that we use for the hedging.

Last year, due to the dynamic of the metal price, was negative. This year is fairly positive, and this is basically, for instance, compensating the other cost item that we have in this line, which is related to the share-based compensation, for instance.

Thank you.

Thank you, Akash.

Thank you, Akash.

Hi, good morning, everyone. Thank you very much for taking my question.

My first one is on the M&A opportunities. I see that you have recently given the authorization from the board to potentially raise up to 10% equity, which I guess now equates to almost €4 billion of extra firepower.

Does that change the thinking you have for the size of M&A you can do, and what will be the focus areas in terms of the target you're looking for?

Thank you, Uma, for the question. This is not changing the size of the target that we have in mind or give us more more more It's just giving us more flexibility in terms of how we can manage the financing of the deals.

It's time beneficial. It's not really having any impact in our aspiration, ambition in terms of M&A opportunities, which are well-defined, very clear, and related to sizable acquisition in geographies and business where organic growth opportunity are stronger and related to asset like similar to the Encore Wire asset, with good potential to create additional synergies.

That's super clear. Thank you very much.

My second one is on sort of the pricing opportunities in the fiber optic cable space. I guess you mentioned that the prices have increased massively in the last couple of months, and how should we think about the proportion of pricing benefit you can see in the coming quarters?

Would you be able to see the full pricing in line with what you see in the market, or is there any difference in terms of the contract structures you have?

You've seen already in quarter one some pricing power because our EBITDA margin in quarter one in Digital Solution has gained 150 basis points over quarter four last year. There is already signs and the tangible signs of this pricing power.

Of course, the full potential of this pricing power will be certainly visible in quarter three, quarter four, but also in quarter two, you will see more benefit coming from the pricing power. We are renegotiating across the board.

In some cases, this is an immediate price when we talk about spot business. Where we have a frame agreement, it takes a little bit longer.

Most of the business is new order intake. We have some backlog we had to flesh out in different segment of optical cable geographies.

Again, this will be steady growing over the next two, three quarters. The full potential, I believe, will be quarter four, quarter three '25 '26.

Let's see.

That's great. Thank you.

My last one's on the Transmission demand, given the conflict in the Middle East and sort of the need of further electrification in Europe. Have you started to see more demand in the Transmission space, and how should we think about the capacity expansion plans beyond 2028, especially given your backlog remains at very high level?

We haven't seen yet real project coming on stream. This takes longer.

We see very active dynamics within our customers in different countries to work on interconnection businesses to create more autonomy and independence in the different countries. Of course, to ship more business in order to achieve this independence, interconnectors is one important asset opportunity.

The other one is to rely more on wind offshore. Those discussion are happening and are very active, and we count on this for additional opportunity in the coming quarters, years in terms of market demand.

We will work on capacity expansion and capability expansion. We want to add more capability or more capacity in the 525 space.

We are going to expand the 525 kV capacity in the coming years to be ready to face the full shift from the old technology that was 320 kV to the 525, and also to the 525 90 degrees, which is the brand-new technology qualified 2 months ago, which provide more power to the interconnection network of our customers.

That's super helpful. Thank you very much.

Thank you, Uma. Welcome.

Good morning, and thank you. Just wanted to touch on media comments related to the US listing just to understand, I guess, given the pivot increasingly to the US, this is back on, first of all, and remains priority.

Secondly, would the timing be actually related or tied with M&A?

Thank you, Sean. This is always a high priority for the company, never has it been different than this.

We had always only timing issue in the past 12 months due to the conflict and clash with other activities of the company. I think your comment about M&A is pertinent.

We will certainly take advantage if things goes in the right direction of our next M&A to couple it with a US listing and create additional value for investors.

Thank you. You've also talked about kind of additional opportunities inside the data center.

I suppose, how could this grow organically, or does this require M&A?

Sorry, is it about organic versus M&A? No, this is an organic opportunity, for sure, because we have all the conditions to take advantage of this market growth, expansion with existing asset in terms of factories, in terms of portfolio products.

We don't need to rely on anyone else. Here it is a matter of finalizing, striking this contract, agreeing the famous down payment that will convince us to invest massive amount of money to expand capacity by 40%-50%.

All of this is organic, which is the beauty of this. We are in full control of the decision, and there's a cushion of the growth plans as we had full control in there's a cushion of the growth plans in Transmission.

Similar model, similar structure of frame agreement, long-lasting benefit, and opportunity to further strengthen the relationship with those customers.

Very clear. One last question, if I may.

Just

thinking about customer behavior in fiber. If we look across power equipment suppliers for data centers, I think the integrated suppliers tell us that being able to provide a broad portfolio is something that is well-received by the hyperscalers.

I think it sounds like you're making the similar argument that you have a unique offering as a bundled fiber and power player. Your main fiber peer in the US has already announced significant framework deals.

Where would you see yourself or how much of an advantage does this bundled offer give you if you look across the hyperscaler procurement over the next, let's say, 12 to 24 months? No,

interesting and very relevant questions, Sean. In the past, we thought that in this data center, we could only play a role by interconnecting data center with long-haul, long-distance cables, where we are strong in terms of innovation, capability of making very compact fiber.

We don't forget we were the first that invented the 160-micron fiber vis-a-vis the 200-micron that is standard in the market. Recently, we realized that we can be a player also inside the building, which used to be the space of the likes of Corning, CommScope, and AFL because they could package optical cables with connectivity.

In reality, there is a big room there opened by the further acceleration and expansion of data center, and we have the opportunity to enter in this space without making any M&A move. By simply organically connect with some of those customers.

We have the opportunity there in the optical space to expand the business inside the building, which is where most of the volume will grow, which is where the growth is going to be the highest in the coming years. Alongside this opportunity, Digital Solution, differently from Mr.

Corning, CommScope, AFL, and the other, we also play a significant role in electrifying data center. By the way, the size of the revenues in electrification of data center through I&C business, Power Grid, and Transmission is currently threefold of that we have in Digital Solution due to the value of the cables and the quantity of cables needed to bring that much energy and electricity to data center.

In this sense, we are unique. The expansion of data center, without arrogance, I can say relies on Prysmian ability to offer the full portfolio from power cables across the border of the segment of energy cables and digital solution.

Very clear. Thank you.

Thank you, Sean.

Good morning, and thanks for taking the time. The first question is on Transmission.

Can you come back on the new capacity that is expected to come online this year? Maybe should we see that over the next quarters, more H2?

When do you expect that phasing to come through after kind of the flattish organic growth in Q1? Thank you.

Thank you, Lucas. The new capacity, basically two additional lines came online in quarter one.

The effect was not fully visible because, as I said, we had phasing in installation, whereby the installation activity was in quarter one '26 specifically lower than what we had in 20 in quarter one 2025. The expansion in capacity will continue in quarter four with a new vessel joining our fleet, and there will be one more additional line bring additional cable capacity in 2027.

That's why you would see 25% organic growth in '26 over '25 in light of this cable capacity expansion and installation capacity expansion.

Which implies the organic growth will be double-digit in the full year.

The EBITDA growth will be 25% the full year. I think I said this before, €180 million increase in EBITDA is what we commit to achieving in '26 over 2025, which is sizable amount.

That is today some of our competitors is the size of what they make in 1 year. The increase.

Sorry for the comment.

Perfect. Super clear.

The next one is on Power Grids, on that margin recovery. Given the tight kind of supply-demand situation, you're saying demand is buoyant.

I'm wondering how come you're not maybe able to push those price increases or go back to the customers to kind of ask for the Midwest premium to be reflected? There should be some bargaining power there.

Also, given we're still seeing inflation, there's a supply risk also with the Middle East, this is likely to continue. Does that bring risk in your ability to get back to normalized level if inflation continues and there's this lag?

Thank you.

Thank you, Lucas. No, the topic about the EBITDA margin in Power Grid is very simple.

It's related to frame agreements. In the past, we didn't have clauses to adjust the cost and reflect the cost increases to the price.

We made this a long journey of including those formulas in all agreements across all utilities worldwide. Now we have agreement in place.

In spite of the cost increase, if the cost increase happened today, we still have to recognize the value of the formulas. In some cases, the customer formula or the contractual formula is that we can pass the average of the last 3 months cost to the price of the new orders.

You can appreciate that when you take a formula like this, you have at least 2, 3 months time lag between when you incur the cost of a business that you deliver this month, and when you can really reflect the cost increase in the new orders. It's a pure effect of time lag, which is kind of depressing our margin when costs inflate.

On the contrary, when the market veers towards a softening inflation, you see the opposite. You will see us holding the price higher than what the cost would entitle us to do.

This is the effect of the time lag: slightly negative in the growing trend in the soaring cost situation, super positive when costs take the other direction. This is for the contractualized business with frame agreement.

Then, of course, in the high-voltage business, we win project on a project basis. In that sense, in that business, we can be much bolder and direct in passing or setting price to reflect the current cost.

I hope I gave you the proper dynamics of the different business inside the power space.

Thank you. All clear.

Just the last one, I think it's coming back on Sean's point. In Digital Solutions, let's say normal kind of fiber and optical cable business, but in the slide, you talk about these kind of new capabilities and driving that through partnerships.

Just coming back on that, what are you looking maybe? Is that partnership more like a JV or reselling somebody else's product, or is it more kind of M&A to develop those new capabilities?

Is that

inside the data center?

Sorry, didn't mean to cut across. No, we are not talking about M&A opportunity in Digital Solution.

These are simply organic growth opportunity, which we will have full control of, and they are related to long-term agreement with customers, it is cables, of course, with some connectivity because, don't forget that after the Channell acquisition, we also play a role in connectivity in fiber-to-the-home, but also in data center. We are talking about organic growth of fiber capacity and cable capacity to provide solutions inside the building.

Inside the building matters a lot because it's a new space to us, and it doesn't require M&A, as we thought in the past, to enter this space in the current market. Allow me, Lucas, to be really more specific in a few weeks after we struck agreement with those customers.

Yes.

Hello, can you hear me?

Yeah.

Yes. Thank you.

I have just one question for you just considering the tariffs that probably are supporting your business in the next quarters also due to the change in the regulation, and potential agreement with hyperscalers. Just to understand in the high part of the range that you stated that you are confident to reach this year for the EBITDA, how much is, roughly speaking, included or these agreements, or I would say the positive part of tariff?

The confidence in hitting the top of the range is supported by the Digital Solution upside. This is, as I said before, partly coming from additional volume that we can immediately unlock, partly coming from the higher pricing power that we have in the current market, is also benefited from what I said at the beginning, €180 million increase, €170-€180 million increase in EBITDA of Transmission was not in our original budget or in our original guidance.

There is a combination of this. Certainly, Digital and Transmission are the two major components to this upside of the guidance.

Tariffs are not included as an upside, because we count on tariffs as we see margin improvement in I&C. We are not betting on the tariffs upside at all.

Okay. Thank you.

Thank you, Alessandro.

Hi. Good morning.

Thanks for letting me in. I've just got a quick question, and I guess sort of a follow-up on Lucas' question on supply chain risks.

Just wondering if you have seen any stress on your supply chain from the war in the Middle East, which I guess has gone on for a little while now. Are you really not being impacted at all from any shortages in aluminum or plastics, for example?

Great question, and thank you for it. There is a lot of stress on the supply chain coming from Middle East situation because many suppliers in the rod aluminum space or compound space had their plants there, and they suffer logistics distress.

Luckily, we are not relying on this supply chain. We had full self-sufficiency in Europe with European players.

We used to have, years ago, some flows of aluminum rod from Middle East, which we disconnected years ago. We see no impact whatsoever coming from the supply chain logistics disruption that happened in Middle East.

There is an overall inflation in the world due to the additional energy costs. The oil and gas price, as you know very well, went through the roof, and this has a reflection, knock-on impact on the raw material costs.

Again, in the flow business, we have immediately reacted and priced it accordingly and pass on the cost increase to the market. In the frame agreement business, is what we mentioned before, there is a time lag, but we have clauses and formula in place to pass this on to the market with these 2, 3 months time lag.

We feel highly protected against possible cost inflation. In terms of supply disruption, we don't suffer from it at all.

Super clear. Thank you very much.

Thank you.

Yes, thanks. Hi, good morning.

I have let's say four questions, okay? Very, very brief questions.

The first one, sorry if you can just come back to the Digital Solution space. You mentioned in the call that historically, the legacy business was at best reporting this 14.5% EBITDA margin.

From the margin expansion we see in Q1, you should be already there basically by year-end. The question is first of all, if this is let's say something correct because we had Channell, no, expanding the margin of the old division.

Just a comment on the legacy business. Second, clearly, the US market is driving, no, this margin expansion.

Can you comment also a little bit about the pricing environment in Europe, also because strangely, we see Chinese fiber now more expensive than the one we have in Europe and US? This is the first let's say question.

Thank you, Alessandro. We see this pricing power happening as we speak.

This will have an impact across the board. It's not just for hyperscalers.

Of course, hyperscalers are the ones willing to pay more to avoid that the shortage of cable in the market hampers their speed of expansion. Also in the normal fiber-to-the-home business, as I said before, we used to buy fiber from the market at $4, $5 1 year ago, even 6 months ago, and now the cost is much higher.

We have our supply chain secured through 2028, the supply we need from the market is at the right price because we signed this agreement months ago. We should have the full potential benefit of the new level of price in the market both in US, as well in Europe, but also in LATAM.

Chinese player are busy at serving the local demand of data center, military applications with the capacity they have in place. They are not invading Europe any longer because they don't have capacity, nice spare capacity.

The environment has completely changed in a positive way, if I may say, Alessandro.

Okay. Thanks.

Then let's say the third question is on the CapEx side. I understood that, no, there are these ongoing negotiations with some hyperscalers.

If we let's say take these almost let's say what around €800 million CapEx for this year, should we think about, let's say, over the years that this is probably something that is going to stay as a level for everything we are discussing? This is let's say the third question.

Sorry, the fourth one, just to conclude, just a question on let's say this line I see on the restructuring cost or items, which is let's say pretty high, €24 million in the quarter. Can you comment a little bit what is it because I don't have in mind on top of let's say automotive any significant other restructuring?

Thanks.

To four questions, I take the first, the CapEx level for '26 will increase over '25, partly to reflect the fiber opportunity, but also, as I mentioned before, we have a series of investments that we're going to deploy in US, in Transmission, and other regions to support organic growth across regions and business units, which will maintain this level of, let's call it, almost €900 million and go beyond €900 million per year CapEx in the coming years. I defer to Francesco to cover the restructuring of the cost item.

Hi Alessandro, is actually mainly related to the disposal of the plants of the automotive business, particularly related to a stock devaluation, an inventory devaluation that we took as a result of these disposals.

Let's say in the coming quarters, we should think about let's say a much lower

Yes. It will be at a lower run rate than this 24, definitely, much lower, I would say.

Okay. Grazie mille.

Grazie a te. Ciao, Alessandro.

Ciao, Alessandro.

Thank you very much for attending this earnings calls. I wish you the rest of the day, and see you next time.

Thank you all.