ACEA (ACE) Q3 2024 earnings summary

Executive summary

• Revenues rose 7% year-over-year to €3.1 billion, driven by regulated businesses and tariff approvals.

• EBITDA for 9M2024 increased 15% to €1,161 million, with recurring EBITDA up 12% to €1,130 million, mainly from water and grids.

• Net profit (excluding one-offs) surged 31% to €274 million, with total net profit up 36% to €285 million, reflecting operational efficiency.

• CapEx reached €952 million, up 22% from 2023, with 91% focused on regulated businesses and 90% net of grants.

• Operating cash flow was negative €16 million due to high capital absorption and investments.

Financial highlights

• Group revenues: €3,107 million (up 7% year-over-year), with regulated sectors' revenues rising 7%.

• EBITDA up €123 million, with 86% from regulated segments; recurring EBITDA at €1,130 million (+12%).

• Net profit reached €285 million, up €65 million organically, with €24 million one-off from inflation recovery.

• CapEx totaled €952 million, up €169 million from 2023, with €123 million funded by public subsidies.

• NFP/EBITDA LTM improved to 3.39x from 3.49x at FY 2023.

Outlook and guidance

• 2024 EBITDA guidance raised to +7%/+9% over 2023, with leverage target improved to ~3.4x.

• CapEx guidance confirmed at €1.5 billion gross and €1.1 billion net of subsidies.

• 2025 expected to see normalization in commercial business and margin recovery in waste.

• Focus remains on cost and investment management amid ongoing geopolitical uncertainties.