Iren (IRE) H1 2024 earnings summary

Executive summary

• EBITDA rose 4.8–5% year-over-year to €635.8–636 million, driven by regulatory adjustments, strong commercial strategy, and improved Market BU profitability.

• Net profit increased 2–5.8% to €145–167.4 million, with EBIT up 13.1% to €280.6–281 million, despite higher depreciation and financial expenses.

• Net financial debt rose 2% to €4,013 million, reflecting investments of €345–370 million and dividend payments.

• The group consolidated Sienambiente and acquired Agrovoltaica, expanding its waste and renewables footprint.

• 2024 guidance and business plan update confirmed, with continued growth and financial sustainability expected.

Financial highlights

• Revenue declined 16.1% year-over-year to €2,697.6–2,698 million, mainly due to lower energy prices and reduced energy efficiency activities.

• EBITDA margin improved to 23.6% from 18.9% in H1 2023.

• Investments in H1 2024 totaled €345–369 million, focused on networks, renewables, and waste.

• Dividends paid totaled €180 million, including €26 million to minority shareholders.

• Net financial debt/EBITDA ratio targeted at ~3.3x for 2024.

Outlook and guidance

• 2024 guidance confirmed: EBITDA of €1,240 million (+4% vs. 2023), group net profit €260–270 million (+4%), and investments planned at ~€1 billion, including EGEA acquisition.

• Ratings affirmed at BBB/Stable by S&P and Fitch after the 2030 business plan update.

• Economic results expected to grow versus 2023, supported by regulatory improvements and market liberalization.

• H2 expected to see continued growth in regulated businesses and partial recovery in waste, offset by lower energy sector contribution due to seasonality.

• Risks include interest rate trends, commodity price volatility, and inflation.