A2A (A2A) Q1 2025 earnings summary

Executive summary

• Revenues rose 16% year-over-year to €3,968M, driven by Duereti consolidation and higher energy prices, despite normalization after exceptional hydro production in Q1 2024.

• EBITDA declined 4% to €675M due to lower hydro output; adjusted EBITDA up 1%.

• Net income fell 13% to €257M; ordinary net income between €252–257M.

• Regulated activities expanded, now 31% of EBITDA, up from 25–26% in Q1 2024.

• Strategic progress in energy transition, circular economy, and smart infrastructures, including new business unit, PPAs, EV charging, and plant acquisitions.

Financial highlights

• Revenues: €3,968M (+16% YoY); EBITDA: €675M (–4% YoY); EBIT: €415M (–11% YoY); Net income: €257M (–13% YoY).

• CapEx increased 37% to €335M, focused on energy transition and circular economy.

• Operating cash flow fully covered CapEx, enabling a €219–220M reduction in net financial position.

• NFP/EBITDA improved to 2.4x from 2.5x at year-end 2024.

• Cash conversion rate above 60%, exceeding business plan targets.

Outlook and guidance

• 2025 guidance confirmed: EBITDA €2.17–2.20B, ordinary net income €680–700M, excluding non-recurring items.

• Hydro production expected to normalize to 4.1 TWh, about 30% lower than last year.

• Networking capital expected to normalize with a positive trend for the year.

• Diversified asset portfolio and financial flexibility support plan targets amid volatility.

• Focus remains on network strengthening, renewables, and decarbonization investments.