ACEA (ACE) H1 2024 earnings summary

Executive summary

• First half of 2024 saw strong organic growth in regulated businesses, with recurring EBITDA up 7% to EUR 720 million and recurring net profit up 18% to EUR 168 million, supported by effective management and infrastructure development.

• Investments reached EUR 568 million (+4% vs 1H2023), with about 90% focused on regulated businesses.

• Financial structure remains solid, with NFP/EBITDA at 3.54x, in line with guidance, despite a net debt increase mainly due to dividend payments.

• Guidance for 2024 confirmed, with expected EBITDA growth of 3% to 5% and investments of EUR 1.5 billion.

Financial highlights

• Group revenues reached EUR 2 billion, with regulated business contributing EUR 1.2 billion, up 2% year-over-year.

• EBITDA increased to EUR 729 million (+9% vs 1H2023), recurring EBITDA at EUR 720 million (+7%).

• Net profit rose to EUR 172 million (+21% vs 1H2023), recurring net profit at EUR 168 million (+18%).

• CapEx totaled EUR 568 million (+4% vs 2023), with 90% allocated to regulated businesses.

• Net debt increased to EUR 5.130 billion at 30 June 2024, mainly due to dividend payments.

Outlook and guidance

• 2024 guidance confirmed: EBITDA growth of 3% to 5%, investments of EUR 1.5 billion (EUR 1.1 billion net of grants), and NFP/EBITDA ratio at 3.5x.

• Management expects 2H2024 results to continue the positive trend, with focus on cost and investment management.

• Positive outlook for regulated businesses, with ongoing tariff negotiations and expected improvement in net working capital in H2.