A2A (A2A) Q3 2024 earnings summary

Executive summary

• Nine-month 2024 results showed EBITDA up 33% to €1.8 billion and net income up 68% to €713 million, driven by strong Generation and Market business units and favorable market conditions.

• Revenues declined 17% to €9,097 million, mainly due to lower commodity prices, which improved customer affordability.

• Strategic plan updated to 2035, maintaining €22 billion CapEx, targeting €3.3 billion EBITDA and net income above €1 billion by 2035.

• Focus remains on energy transition, circular economy, and urban growth, with a strong ESG commitment and new employee stock ownership plan.

• Upgraded FY 2024 guidance due to robust industrial growth and favorable market scenario.

Financial highlights

• EBITDA reached €1.8 billion (up from €1.357 billion), EBIT €1.107 billion, and net income €713 million (vs. €425 million last year).

• Ordinary group net income was €665 million; CapEx rose 13% to €898 million, with 60% allocated to development.

• Net financial position improved by €672 million to €4,011 million; NFP/EBITDA ratio at 2.0x excluding hybrid bond.

• EBITDA margin improved to 19.8% from 12.4% year-over-year.

• Strong liquidity position post-electricity grid acquisition, with >1.2x coverage ratio and average cost of debt at 2.7%.

Outlook and guidance

• 2024 EBITDA guidance raised to €2.28–2.32 billion; net ordinary income expected at €0.80–0.82 billion, the group's best result in recent years.

• By 2035, targets include €3.3 billion EBITDA, net income above €1 billion, 5.7 GW renewables, and 7 million tons of waste treated.

• CapEx acceleration planned, with €15.6 billion cash for industrial development and sustainable finance goals.

• 2025 guidance: EBITDA €2.17–2.20 billion, ordinary net income €0.68–0.70 billion.