Hyperscaler agreement crystallises margin upside

研报英文原文证据摘录

Hyperscaler agreement crystallises margin upside

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Prysmian

Hyperscaler agreement crystalises margin

upside

Reiterate Rating: BUY | PO: 180.00 EUR | Price: 125.35 EUR

Repricing & margin upside from hyperscaler LTA 21 July 2026

Prysmian announced a 10YR agreement with Molex (a Koch Inc. company) worth up to Equity

€5.5bn with a €550 million downpayment to supply optical cables. This is included in the

company’s expectation of c€10bn cumulative revenue between 2026-2035 in fibre

Key Changesoptical cables. Crucially, we see this driving upside to our prior forecasts via 1) repricing

of higher proportion of current fibre contract in 2026 and 2) higher than expected (EUR) Previous Current

EBITDA margin for the hyperscaler agreements at >30%. Medium-term we also think Price Obj. 175.00 180.00

that the value of the agreement ( €5.5bn) and the announced capacity expansion (>2x US

capacity) are both slightly ahead of expectation, although we recognise that the revenue Uma Samlin >>

Research Analyst

conversion is likely to be somewhat back end loaded given the timeline of capacity MLI (UK)

expansion (due to complete 1 st phase in 2028 and 2 nd phase 2029/2030). We lift our +44 20 7995 1964 uma.samlin@bofa.com

group 26e/28e EBITDA by c2%, leading to our new PO €180. Reiterate Buy. Benjamin Heelan >>

Merrill Lynch (DIFC)Another 13%/5% uplift to DS EBITDA in 2026/2028e +44 20 7996 5723

We raise our assumption for hyperscaler-related fiber repricing in 2026, now expecting benjamin.heelan@bofa.com

50% of Prysmian’s existing fiber capacity to be repriced (vs 20% previously). This drives Alexander Jones, CFA >>

a 13% increase in our 2026 DS EBITDA forecast, as the Molex agreement crystallises a ResearchMLI (UK) Analyst