Italgas (IG) Q1 2025 earnings summary

Executive summary

• Closed the 2i Rete Gas acquisition on April 1, 2025, ahead of schedule, making the group the largest and 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.

• Net profit attributable to owners reached €168.8 million, a 43.7% increase from Q1 2024.

• 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; adjusted net profit up 12.8% to €132.6 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.

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

• CapEx/technical investments totaled €165.7 million, with 140 km of new pipes installed, a 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 acquisition anticipated in 2025.

• First synergies from the merger estimated at ~€10 million in 2025, with a €200 million synergy target by 2030.

• Integration and merger with Italgas Reti targeted for July 1, 2025, with antitrust remedies and asset disposals on track.