ACEA (ACE) Q1 2025 earnings summary

Executive summary

• Consolidated revenues for Q1 2025 rose to €1,103 million, up 8.8–9% year-over-year, driven by tariff growth, improved commercial margins, and increased production volumes, with regulated businesses as the main contributors.

• EBITDA increased by 7–8% year-over-year to €384 million, with organic growth supported by water tariffs, commercial margin improvements, public lighting investments, and higher hydroelectric and photovoltaic output.

• Net profit attributable to the Group rose 18.7–19% year-over-year to €98 million, with recurring net profit up 3% after adjustments.

• Investments increased 6% to €262 million, with 91–92% allocated to regulated businesses, mainly focused on Networks & Public Lighting.

• Financial structure remains sound, supporting ongoing infrastructure investment and confirming 2025 guidance.

Financial highlights

• Group revenues: €1,103 million (+8.8–9% YoY).

• EBITDA: €384 million (+7–8% YoY); EBIT: €189 million (+12.3% YoY).

• Net profit: €98 million (+18.7–19% YoY; +3% recurring).

• CapEx: €262 million (+6% YoY), with €242 million net of grants, stable year-over-year.

• Net financial debt: €5,116 million, up €162.5–163 million from Dec 2024; Net Debt/EBITDA LTM at 3.23x.

Outlook and guidance

• 2025 guidance confirmed: EBITDA growth of +2% to +3% over 2024 restated figure, with planned investments of ~€1.6 billion (€1.2 billion net of grants).

• Net Debt/EBITDA expected at 3.4–3.5x for 2025.

• Focus remains on sustainable infrastructure and regulated business growth.

• Management anticipates lower margin growth in Q2 and increased operating costs in subsequent quarters due to market competition and cost dynamics.

• Cost and investment management prioritized amid global uncertainty.