ACEA (ACE) Q1 2025 earnings summary

Executive summary

• Revenues for Q1 2025 ranged from €344 million to €1,103 million, up 4–9% year-over-year, driven by tariff growth, commercial margin improvements, and increased production volumes, with regulated businesses contributing significantly.

• EBITDA increased by 7–19% year-over-year, with organic growth attributed to water tariffs, commercial margin improvements, public lighting investments, and higher hydroelectric and photovoltaic output.

• Net profit rose by 3–19% year-over-year, supported by operating performance and amortization in regulated businesses.

• Investments/capex increased by 6% to €262 million, with 91–92% allocated to regulated businesses.

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

Financial highlights

• Group revenues reached up to €1,103 million (+4–9% year-over-year).

• EBITDA was €384 million (+7–8% year-over-year, recurring), with gross margin at 34.8%.

• Net profit was €98 million (+3% recurring, +19% reported year-over-year).

• Capex (net of grants) was €242 million, stable year-over-year; total capex including grants up 6%.

• Net financial debt increased to €5,116 million, with Net Debt/EBITDA LTM at 3.23x.

Outlook and guidance

• 2025 guidance confirmed, with EBITDA expected to grow 2–3% over 2024 restated figures and 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 and increased operating costs in subsequent quarters due to market competition and cost dynamics.

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