ACEA (ACE) Q1 2025 earnings summary

Executive summary

• Consolidated revenues for Q1 2025 reached €1,103 million, up 8.8–9% year-over-year, driven by tariff growth, improved commercial margins, and higher production volumes in hydroelectric, photovoltaic, and regulated segments.

• EBITDA rose 7–8% year-over-year to €384 million, with organic growth from water tariffs, commercial margin improvements, and investments in public lighting and regulated businesses.

• Net profit attributable to the Group increased by 18.7–19% to €98 million, with recurring net profit up 3% year-over-year, supported by operating performance and amortization in regulated businesses.

• Investments rose 6% to €262 million, with 91–92% allocated to regulated businesses, mainly in 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); net profit: €98 million (+18.7–19% YoY, +3% recurring).

• CapEx totaled €262 million (+6% YoY), with 91–92% in regulated businesses; €20 million of CapEx financed by public interventions in water.

• Net financial debt increased to €5,116 million (+3–4.1% YoY), with Net Debt/EBITDA at 3.23x.

• Cash flow was negative by €127 million, reflecting higher working capital absorption and increased long-term regulatory credits.

• 89% of debt at fixed rates, average cost of debt at 2.10%, average maturity 4.6 years.

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.

• Management anticipates lower margin growth in Q2 due to competitive pressures and higher operating costs.

• Focus remains on sustainable infrastructure in regulated markets and cost/investment management amid global uncertainty.

• No revision to EBITDA guidance despite strong Q1 performance; PUN normalization and increased competition expected to moderate results.