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, but delivered resilient financial results with a focus on electrification and energy transition initiatives.

• 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.

• Ongoing investments in renewables, grids, and data center connections support long-term growth, with notable demand growth in Lombardy and data centers emerging as a significant new customer segment.

• The business model's resilience and diversification enabled continued investment and operational execution.

Financial highlights

• Adjusted revenues reached €4,552 million (+15% YoY), while adjusted EBITDA declined 4% to €647 million, mainly due to lower commodity prices, higher concession fees, and increased operating expenses.

• Adjusted group net profit was €221 million, down 11% year-over-year, impacted by higher depreciation and provisions.

• 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 negative, reflecting seasonality, higher trade receivables, and increased working capital.

Outlook and guidance

• 2026 guidance confirmed: Adjusted EBITDA between €2.21–2.25 billion and Adjusted Group Net Profit between €0.63–0.66 billion, with hedging covering 70% of 2026 and 60% of 2027 generation at favorable prices.

• 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.

• Strategic projects in power generation, grids, and circular economy remain on track.