Enagás (ENG) Q1 2025 earnings summary

Executive summary

• Net profit for 1Q 2025 was €65.2M, nearly unchanged from 1Q 2024, with EBITDA at €163.9M, down 8.1% year-over-year due to regulatory impacts.

• Total revenues declined 4.7% to €210.1M, mainly from lower regulated income, partially offset by higher other operating income.

• Net debt decreased to €2.363Bn, down €979M year-over-year, with over 80% at fixed rates and an average maturity of 5.4 years.

• Spain's gas system maintained 100% supply availability, with total demand (including exports) up 3.4% year-over-year to 100.3 TWh.

• Strategic progress included hydrogen infrastructure initiatives, successful resilience during a major power outage, and advances in decarbonisation projects.

Financial highlights

• Net profit: €65.2M (flat vs. 1Q 2024); EBITDA: €163.9M (-8.1%); EBIT: €86.3M (-7.1%).

• Total revenues: €210.1M (-4.7%); recurring operating expenses slightly below prior year, but total operating expenses rose 6.4% due to non-recurring items.

• Funds from operations (FFO): €140.3M (-14.1%); operating cash flow: €103.7M (+58.4%).

• Net investments: €25.7M; free cash flow: €78.0M.

• Dividend of €1.00/share for FY2024 approved, with €0.60/share to be paid in July 2025.

Outlook and guidance

• 2025 targets reaffirmed: net profit €265M, EBITDA ~€670M, net debt ~€2.4Bn, FFO/Net Debt >15% to support BBB+ rating.

• Recurring operating expenses expected to grow at a maximum 1.5% CAGR through 2026.