Italgas (IG) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw continued growth, with adjusted revenues up 6.5% to €459.3 million and adjusted EBITDA up 6.0% to €345.3 million year-over-year.

• Net profit attributable to owners reached €168.8 million, a 43.7% increase from Q1 2024; adjusted net profit up 12.8% to €132.6 million.

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

• 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.

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.

• Net profit attributable to the Group rose 43.5% to €168.7 million; earnings per share rose to €0.21 from €0.14 year-over-year.

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

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

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

Outlook and guidance

• FY 2025 guidance: adjusted revenues ~€2.45 billion, adjusted EBITDA €1.80–1.85 billion, adjusted EBIT €1.12–1.16 billion, technical investments ~€1.2 billion.

• Net financial debt projected at ~€10.8 billion (excl. IFRS 16 & IFRIC 12); net debt below €1.1 billion by year-end (IFRS 16 included).

• EPS accretive impact from 2i Rete Gas expected in 2025.

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

• Antitrust remedies and asset disposals progressing on schedule, with a public process for the sale of 606,000 redelivery points.