Iren (IRE) Q3 2024 earnings summary

Executive summary

• EBITDA for the first nine months of 2024 rose 8% year-on-year to €924 million, driven by regulatory adjustments, higher regulated revenues, improved commodity sales margins, and a 31% increase in renewable energy volumes.

• Net profit increased 9% year-over-year to €193 million, with profitability growth despite a competitive market and higher tax rate.

• Revenues declined 10.2% year-over-year to €4,157 million, mainly due to lower energy prices, reduced energy efficiency activities, and the wind-down of Superbonus 110%.

• The customer base expanded to over 2.3 million, with significant growth in Iren Plus contracts and environmental services coverage.

• ESG progress included a 4% reduction in carbon intensity and a 68% sorted waste collection rate.

Financial highlights

• EBITDA for the nine months was €924 million (+8% YoY); EBIT up 17% to €379 million.

• Group net profit reached €193 million (+9% YoY); technical capex increased 2% to €560 million.

• Net financial debt increased to €4,107 million (+4% from 31 Dec 2023), mainly due to acquisitions and investments.

• Operating cash flow of €713 million covered €560 million in technical investments and €111 million in M&A.

• Dividend of €0.1188 per share approved.

Outlook and guidance

• FY2024 EBITDA expected at €1,250 million, up 4% from 2023 and €10 million above previous guidance.

• Group net profit forecasted at €260–270 million, up 4% year-on-year.

• Total investments for the year projected at around €1 billion, focusing on networks, waste, renewables, and EGEA acquisition.

• NFP/EBITDA ratio expected at 3.3x.

• 2025 outlook in line with the strategic plan, with positive contributions from network and energy BUs and further recovery in waste profitability.