Ignitis grupe (IGN1L) H2 2024 earnings summary

Executive summary

• Adjusted EBITDA reached a record EUR 527.9 million, up 8.9% year-over-year, exceeding guidance.

• Green Capacities portfolio expanded by 0.8 GW to 8.0 GW, with major projects launched and completed in Lithuania and Poland.

• Dividend for 2024 set at EUR 1.33 per share, a 3.1% increase, with a yield above 6%.

• Investments totaled EUR 812 million, with over half directed to Green Capacities and a strategic focus on green energy and network expansion.

• Maintained strong balance sheet with net debt-to-Adjusted EBITDA at 3.05x, despite heavy investments.

Financial highlights

• Adjusted net profit decreased by 3.2% to EUR 277.5 million due to higher interest expenses.

• Revenue declined 9.5% year-over-year to EUR 2,307.0 million, mainly due to Customers & Solutions segment.

• Free cash flow was negative at EUR -212.4 million, reflecting high investment levels.

• S&P reaffirmed BBB+ credit rating with a stable outlook.

• Net debt rose 22.4% year-over-year to EUR 1,612.3 million.

Outlook and guidance

• 2025 Adjusted EBITDA expected between EUR 500 million and EUR 540 million.

• Investments for 2025 guided at EUR 700 million–EUR 900 million, focused on renewables and network expansion.

• Growth anticipated in green capacities, networks, and reserve capacities; customers and solutions expected to decline.

• Dividend policy targets minimum 3% annual growth, with 2025–2027 implied yield 7.5–8.0%.