A2A (A2A) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by high volatility in the energy market due to geopolitical tensions and regulatory changes in Italy and Europe, but delivered resilient financial results with a focus on electrification and energy transition initiatives.

• Strategy centered on Italian energy independence, increased electrification, and proactive management, with ongoing investments in renewables, grids, and data center connections supporting long-term growth.

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

• Adjusted EBITDA declined 4% to €647 million, mainly due to lower commodity prices, higher concession fees, and reduced margins in waste treatment, partially offset by growth in renewables and electricity distribution.

• Adjusted group net profit fell 11% to €221 million, reflecting lower EBITDA and increased depreciation/amortization from higher capex.

Financial highlights

• Adjusted revenues reached €4,552 million (+15% YoY), while adjusted EBITDA was €647 million (-4% YoY).

• 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 Adjusted EBITDA, stable year-over-year.

• Capex increased by 4% year-over-year to €315 million, with a significant portion 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 capex.

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 about 70% of renewable generation.

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

• Spot price increases may offer some upside, but impact is limited by hedging.

• No structural changes expected in market design or ETS framework; guidance incorporates current regulatory and market assumptions.

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