A2A (A2A) investor relations material

Executive summary

• Q1 2026 saw high volatility in the energy market due to geopolitical tensions and regulatory measures in Italy and Europe.

• Adjusted revenues rose 15% year-over-year to €4,552 million, driven by higher electricity volumes sold and intermediated, despite lower commodity prices.

• The company maintained stability for customers by offering fixed price contracts, now covering 50% of the mass market base.

• Investment strategy focused on renewables, grid upgrades, electrification, and digitalization, with notable demand growth in Lombardy.

• Data centers are emerging as a significant new customer segment, driving increased connection requests.

Financial highlights

• Adjusted EBITDA reached €647 million, down 4% year-over-year, reflecting higher renewables output and strong trading, but offset by increased concession fees and lower prices.

• Adjusted group net profit was €221 million, down 11% year-over-year.

• Net financial position stood at €5,628 million, with a leverage ratio of 2.5x, stable year-over-year.

• CapEx increased by 4% year-over-year to €315 million, with 70% allocated to development projects in electricity networks, renewables, and circular economy initiatives.

• Operating cash flow was €149 million; net free cash flow was €-166 million, reflecting seasonality and higher trade receivables.

Outlook and guidance

• 2026 guidance confirmed, with hedging covering 70% of 2026 and 60% of 2027 generation at favorable prices.

• Adjusted EBITDA guidance for 2026 is €2.21–2.25 billion and adjusted group net profit €0.63–0.66 billion.

• Management expects generation and smart infrastructure to remain in line with prior year, with market supply slightly behind but resilient.

• No structural changes expected in market design or ETS; competitive pressure anticipated to gradually reduce margins.