Italgas (IG) Q1 2025 earnings summary

Executive summary

• Closed the 2i Rete Gas acquisition on April 1, 2025, ahead of schedule, making the company the largest, most technologically advanced gas distributor in Europe, with integration and synergy realization underway.

• Achieved double-digit adjusted net income growth in Q1 2025, with all business segments contributing positively despite a lower WACC.

• Acqua Campania and subsidiaries fully consolidated from January 30, 2024, boosting water segment results.

• Technical investments reached €165.7 million, supporting network expansion and digital transformation.

• Integration and merger with Italgas Reti targeted for July 1, 2025, with corporate and IT reorganization underway to realize synergies.

Financial highlights

• Adjusted total revenues rose 6.5% year-over-year to €459.3 million; adjusted EBITDA up 6.0% to €345.3 million; adjusted EBIT increased 17.0% to €225.4 million.

• Adjusted net profit grew 12.8% to €132.6 million; net profit attributable to the Group rose 43.5% to €168.7 million.

• Cash flow from operations surged 20.6% to €412.1 million; net financial debt (excl. IFRS 16) declined by over €200 million to €6,466.8 million; total net financial debt at €6.56 billion.

• CapEx/technical investments reached €165.7 million, with 140 km of new pipes installed, a 50% increase year-over-year.

• Free cash flow improved to €185.3 million from €135.8 million in Q1 2024.

Outlook and guidance

• 2025 guidance includes nine months of 2i Rete Gas contribution and assumes antitrust disposals complete by October 2025.

• Adjusted revenues expected at ~€2.45 billion; EBITDA €1.8–1.85 billion; EBIT €1.12–1.16 billion; technical investments €1.2 billion; net debt below €1.1 billion by year-end.

• Deal expected to be EPS accretive in 2025, with first synergies from the merger estimated at ~€10 million in 2025.

• €200 million synergy target by 2030 remains unchanged, with updates expected in the October strategic plan.

• Large-scale digitization and AI initiatives planned to enhance performance and service quality.