Iren (IRE) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong growth, with EBITDA up 9–9.2% and net profit up 8% year-over-year, driven by EGEA integration, organic expansion in regulated sectors, and higher energy prices.

• Revenues increased 33–33.5% to €2,093M, reflecting higher commodity prices, increased energy volumes, and EGEA's contribution.

• Investments totaled €717–720 million, with €185 million in technical and €532 million in financial investments, funded by operating cash flow and a €500 million hybrid bond issued in January.

• Net financial debt decreased to €3,972 million, down €110–111 million from December 2024, supported by hybrid bond proceeds.

• 2025 guidance was confirmed, with continued investment, stable leverage, and a focus on sustainability and network expansion.

Financial highlights

• EBITDA reached €418–418.5 million (+9–9.2%), EBIT €223.9–224 million (+5–5.4%), and net profit €135.6–136 million (+8%), mainly due to EGEA consolidation and higher energy business margins.

• Revenues: €2,092.8–2,093M (+33–33.5% year-over-year), mainly from energy sales and EGEA.

• Technical investments rose 12% to €185 million, focused on water, electricity networks, and waste treatment.

• Operating cash flow exceeded €300 million, fully covering technical investments.

• Net financial position improved to €3,972 million, down 3% from FY 2024.

Outlook and guidance

• 2025 EBITDA guidance confirmed at €1,340–1,360 million, with EGEA expected to contribute €55 million.

• Net profit forecasted at €300–310 million; net debt/EBITDA ratio targeted at ~3.2x.

• Over €900 million in investments planned for 2025, plus €500 million in finalized financial investments.

• Growth expected in networks, improved plant profitability in waste, higher energy production, and stable market margins.

• EGEA integration expected to deliver anticipated results.