Elia Group (ELI) H1 2024 earnings summary

Executive summary

• Net profit attributable to Elia Group shareholders rose 11.8% year-over-year to €181.6 million, driven by strong performance across all segments and record investments of €1,735.9 million in grid expansion, offshore projects, and digitalisation.

• Revenues increased 9.6% to €1,914.3 million, with double-digit EPS growth and robust operational performance.

• Full-year net profit guidance was raised to €355–395 million, reflecting improved outlooks in Belgium, Germany, and for Nemo Link.

• Talent management, digital innovation, and supply chain resilience are key organizational focuses amid rapid growth and workforce expansion.

• Multiple entries into the debt market and green bonds strengthened liquidity for upcoming grid investments and inorganic growth.

Financial highlights

• Group revenues reached €1,914.3 million (+9.6% yoy); net profit Elia Group share: €181.6 million (+11.8% yoy); adjusted net profit grew 9.6% to €218.8 million.

• Net debt (excluding EEG) increased 19.8% to €10,773.4 million, reflecting high CapEx and the energyRe Giga investment.

• Average cost of debt rose to 2.8% at group level; S&P rating: BBB/stable outlook; fixed debt ratio: 97.7%.

• EBITDA rose 11.9% to €678.1 million; EBIT up 14.7% to €385.8 million.

• Free cash flow was negative across segments, reflecting heavy CAPEX and investment outflows.

Outlook and guidance

• 2024 net profit guidance raised to €355–395 million; adjusted ROE expected between 7% and 8%.

• Belgium: net profit guidance €200–220 million, CapEx of €1.4 billion, OLO at ~3%.

• Germany: net profit guidance €260–290 million, CapEx of €3.3 billion, base rate at 2.79%.

• Non-regulated segment and Nemo Link expected to report a loss of €30–35 million, with Nemo Link contributing around €30 million profit.

• No equity raise planned for 2024; capital increase possible from 2025, with €4–4.5 billion targeted over five years.