A2A (A2A) H1 2024 earnings summary

Executive summary

• H1 2024 delivered strong financial and operational performance, with EBITDA up 45% to €1,279 million, driven by exceptional hydro generation, renewables, and effective hedging strategies.

• Net profit rose 75% to €489 million, with Ordinary Net Profit up 86% to €478 million compared to H1 2023.

• Over 60% of energy production came from renewables, with significant new photovoltaic capacity and Italy's largest rooftop PV system launched.

• Strategic asset disposals and acquisitions, including the Enel transaction, Ascopiave deal, and 70% stakes in Agesp Energia and Parco Solare Friulano 2, are reshaping the business focus.

• Issued inaugural €750 million green hybrid bond, boosting sustainable debt to 77% of total gross debt and reinforcing commitment to sustainable finance.

Financial highlights

• Revenues fell 24% year-over-year to €6,091 million, mainly due to lower energy commodity prices, while EBITDA margin improved to 21% from 11%.

• Net financial position improved to €4,019 million from €4,683 million at year-end 2023, with leverage at 1.7x (2.0x excluding hybrid bond).

• Capex rose 12% to €553 million, focused on renewables, networks, and infrastructure, with 78% aligned to EU taxonomy/SDGs.

• Operating costs dropped 35% to €4,370 million, reflecting commodity price trends.

• Net working capital at €240 million, reflecting lower gas purchases and improved credit management.

Outlook and guidance

• 2024 EBITDA guidance raised to €2.18–2.22 billion; Net Ordinary Income expected between €700–720 million, reflecting strong H1 performance.

• 2025 outlook includes €80 million additional EBITDA from capacity market and €100 million from Enel transaction.

• Capacity market revenues expected to remain above €200 million through 2027, with Monfalcone plant contributing from mid-2026.

• Retail EBITDA expected to rise in 2025 as retention campaign costs subside.

• Company remains on track to achieve strategic plan targets through sustainable growth.