Iren (IRE) Q3 2024 earnings summary

Executive summary

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

• Net profit increased 9% year-over-year to €193 million, reflecting higher operating results and improved financial management.

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

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

• Issued €1 billion in Green Bonds in 2024, supporting sustainable growth and maintaining financing costs below 4%.

Financial highlights

• EBITDA reached €924 million (+8% YoY); EBIT up 17% to €379 million; net profit €193 million (+9% YoY).

• Revenues: €4,157 million (-10.2% 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.

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

• Dividend of €0.1188 per share approved.

Outlook and guidance

• Year-end 2024 EBITDA expected at €1,250 million, up 4% from 2023 and at the upper end of guidance.

• Group net profit forecasted at €260–270 million (+4% YoY); NFP/EBITDA ratio expected at 3.3x.

• Total investments for 2024 projected at about €1 billion, focusing on networks, waste, renewables, and EGEA acquisition.

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

• Board approved a new Business Plan to 2030, targeting €1.8 billion EBITDA and €8.2 billion investments.