Iren (IRE) Strategy update summary

Strategic direction

• 2021–2025 investment averaged ~€1bn annually, supporting average annual EBITDA growth of 8% and attributable profit growth of almost 5%.

• 2035 ambition: evolve into a nationally significant infrastructure player while retaining local presence and community ties.

• Strategy remains anchored in the energy transition, value creation in local communities and service quality; operational excellence links service improvements with profitability.

• Efficiency priorities include managing an addressable cost base above €2bn, redesigning ~40% of IT processes through digitalisation and AI by 2030, and raising ROI from 6.7% in 2025 to ~10% in 2035.

Investment program

• 2026–2035 CapEx totals €10.4bn: €5.1bn in 2026–2030 and €5.3bn in 2031–2035; 73% is allocated to regulated or semi-regulated activities.

• Networks, environment and energy account for 42%, 21% and 21% of investment; 45% supports development and 55% maintenance and renewal.

• €5bn is allocated to water (€2.4bn), electricity distribution (€1.4bn) and waste-to-energy (€1.2bn), including ~1,700 km of water-network replacement and four WTE plants adding ~1.1m tonnes of annual capacity.

• Networks receive €4.4bn, including €600m for gas distribution; plans include six new electricity substations, water-loss reduction from 31.4% in 2025 to 26%, and halved outage duration by 2030.

• More than 80% of investment goes to infrastructure-intensive businesses; investment is distributed evenly across 2026–2035.

Financial outlook and capital discipline

• EBITDA targets: €1.5bn in 2028, ~€1.6bn in 2030 and ~€1.95bn in 2035, with 4% average annual growth; net profit targets include €301m in 2025, €385m in 2030 and ~€550m in 2035.

• ROI targets rise from 6.7% in 2025 to 8% in 2030 and ~10% in 2035, supported by infrastructure development, efficiency and more productive capital.

• Net debt/EBITDA is projected at 3.0x in 2030 and 2.8x in 2035, below the 3.5x threshold; cumulative operating cash flow through 2030 is €5.2bn against €4.8bn of planned net investment outflows.

• Debt profile: 95% fixed-rate at FY 2025, five-year average duration and ~85% sustainable debt on average over the plan; average debt cost is forecast below 2.8% in 2027–2028 and ~3% in 2029–2030.

• Dividend per share is forecast to rise from 13.86 euro cents in 2025 to 19.20 euro cents in 2030; annual growth is 8% through 2027 and 6% from 2028 to 2030.