Iren (IRE) Q2 2025 earnings summary

Executive summary

• Revenues rose 29% year-over-year to €3,486 million, driven by higher energy prices, increased sales volumes, and the consolidation of EGEA Holding from January 2025.

• EBITDA increased 14% to €726 million, supported by EGEA integration, organic growth, and regulatory effects, with margin at 20.8%.

• Net profit attributable to shareholders rose 24% to €184 million, reflecting operational improvements and reduced minority interests after acquiring Iren Acqua.

• Over €900 million in total investments, with technical investments up 14% and 72% aligned with the European Taxonomy for sustainability.

• Major acquisitions included full control of EGEA Holding and the remaining 40% of Iren Acqua.

Financial highlights

• EBITDA grew by €90 million (+14%) to €726 million; EBIT up 17% to €326 million year-over-year.

• Net financial debt increased 4% to €4,228 million, mainly due to dividend payments and financial investments.

• Technical investments reached €393 million (+14%), with total investments at €915 million.

• Operating cash flow offset technical capex, but free cash flow was negative due to acquisitions.

• Net invested capital grew 5.1% to €7,808.3 million.

Outlook and guidance

• 2025 guidance confirmed: expected EBITDA of €1,340–1,360 million, net profit of €300–310 million, and technical investments over €900 million.

• H2 expected to be weaker due to non-recurring items in H1 and lower hydroelectric output.

• Networks and waste segments expected to maintain growth; energy and market segments to face headwinds in H2 2025.

• Net financial debt/EBITDA ratio projected at 3.2x for year-end.

• Hydroelectric production guidance for 2025 revised down to 1,300 GWh due to dry weather.