ACEA (ACE) H2 2024 earnings summary

Executive summary

• Achieved record 2024 results with all-time high EBITDA (€1,557m, +12%) and net profit (€332m, +13%), surpassing business plan targets a year ahead of schedule.

• Strong organic growth in regulated businesses, with 87% of recurring EBITDA and 91% of investments directed to regulated segments.

• Major progress in long-term growth projects, including water infrastructure, international expansion (notably in Peru), and new tenders in previously unserved regions.

• Strategic asset moves included consolidation changes, new sub-holdings, entry into new water regions, and sale of HV grid.

• Fitch upgraded rating outlook to stable, confirming BBB+ rating; significant sustainability ratings achieved.

Financial highlights

• Revenues reached €4.3bn (down 8% vs 2023), mainly due to lower energy prices; EBITDA up 12% to €1,557m; net profit up 13% to €332m.

• Recurring EBITDA at €1,515m (+11%); recurring net profit at €330m (+18%).

• Net investments totaled €1,439m (+26%); capex net of grants €1,179m (+19%).

• Operating free cash flow was €373m, up €225m year-over-year.

• Net debt/EBITDA improved to 3.18x (from 3.49x in 2023), better than guidance.

Outlook and guidance

• 2025 EBITDA expected to grow by 2–3% versus restated 2024, targeting €1,515–1,557m.

• Capex planned at ~€1.6bn (net of subsidies ~€1.2bn), another all-time high.

• Net debt/EBITDA forecasted at 3.4–3.5x for 2025, factoring in asset sales.

• Dividend policy targets 4% annual growth over five years, with 2024 payout at €0.95 per share (+8%), payout ratio 61%.

• Guidance incorporates approved tariffs, regulatory developments, and excludes HV grid EBITDA pre-sale.