ACEA (ACE) H2 2023 earnings summary

Executive summary

• FY2023 adjusted EBITDA reached €1,347m, up 7% YoY, driven by regulated business growth and operating efficiencies; reported net profit was €294m, up 5%.

• Consolidated net revenue was €4,649m versus €5,138m in FY2022; adjusted revenue declined 1% YoY after non-recurring items and scope changes.

• Investments remained focused on regulated businesses; positive operating cash flow of €148m supported investment funding and financial discipline.

Financial highlights

• Reported EBITDA was €1,391m versus €1,305m in FY2022; adjusted EBITDA was €1,347m, up €87m YoY, with adjusted EBITDA margin rising from 25% to 30%.

• Operating profit was €612m versus €566m; reported net profit was €294m versus €280m, while adjusted net profit rose 22% to €280m.

• Net capex was €993m versus €1,001m; gross capex including financial investments was €1,143m, with investment growth in Water, Grids and Public Lighting, and Environment.

• Operating cash flow improved to €148m from €19m in FY2022, mainly on stronger working capital; total cash flow was negative €407m.

Outlook and guidance

• FY2024 EBITDA guidance: growth of 3%–5% versus FY2023; investments of €1.5bn, or €1.1bn net of grants; NFP/EBITDA guidance ~3.5x.

• FY2023 NFP/EBITDA of 3.49x was below the stated FY2023 guidance ceiling of 3.8x; leverage guidance was confirmed.