Iren (IRE) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong growth, with revenues up 33.5% to €2,092.8 million and EBITDA rising 9.2% to €418.5 million, driven by higher energy prices, increased volumes, and the consolidation of EGEA, which contributed over €20 million to EBITDA.

• Net profit attributable to shareholders increased 8% year-over-year to €135.6 million, supported by the acquisition of the remaining 40% of Iren Acqua and reduced minorities.

• Investments totaled €717 million, including €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 million from December 2024, maintaining a net debt/EBITDA ratio of ~3.2x.

• ESG progress included stable carbon intensity, increased sorted waste collection, and 70% of investments aligned with EU taxonomy.

Financial highlights

• Revenue: €2,092.8 million (+33.5% YoY); EBITDA: €418.5 million (+9.2% YoY); EBIT: €223.9 million (+5.4% YoY); Net profit: €135.6 million (+8% YoY).

• 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.

• EBITDA margin declined to 20.0% from 24.4% due to higher operating expenses.

• Net financial debt improved to €3,972 million, down 3% from year-end 2024.

Outlook and guidance

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

• 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.

• Financial results for 2025 expected to improve on 2024, supported by organic growth, improved plant profitability, and EGEA integration.

• EGEA integration expected to deliver anticipated results.