ACEA (ACE) Q3 2024 earnings summary

Executive summary

• Revenues for the first nine months of 2024 reached €3.1 billion, up 7% year-over-year in regulated businesses, though consolidated revenues declined 8% due to lower energy prices and electricity sales.

• EBITDA rose between 12% and 15.3% to as high as €1,161 million, mainly driven by water, grids, and tariff increases.

• Net profit attributable to the Group increased up to 36.1% to €285 million, with recurring net profit up 31% to €274 million, supported by operational efficiency and financial management.

• CapEx totaled up to €952 million, up over 21% year-over-year, with over 90% allocated to regulated businesses and infrastructure.

• NFP/EBITDA ratio improved to 3.39x from 3.49x at end-2023, reflecting stronger financial leverage.

Financial highlights

• EBITDA reached up to €1,161 million (+15.3% year-over-year); EBIT rose 25% to €555 million.

• Net profit attributable to the Group was €285 million (+36.1%), with recurring net profit at €274 million (+31%).

• CapEx net of grants was €829 million (+13%), with gross investments up to €952 million (+22%).

• Net financial position increased to €5,232 million, mainly due to investment activity and dividend payments.

• Operating cash flow was negative €16 million, reflecting high capital absorption.

Outlook and guidance

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

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

• Focus remains on cost and investment management amid geopolitical and interest rate volatility.

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