Italgas (IG) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA, EBIT, and net income grew double digits year-over-year, driven by strong gas distribution and water segment performance, offsetting the end of the Superbonus incentive.

• The 2i Rete Gas acquisition is fully integrated, supporting strategic objectives and positioning the company as a European leader in gas distribution.

• Positive contributions from Greece and the water business, with Acqua Campania expansion and network digitization progressing.

• Operating cash flow nearly doubled year-over-year, reflecting normalization after last year's Superbonus-driven cash absorption.

• Technical investments supported network expansion and digitization, with a focus on sustainability and innovation.

Financial highlights

• Adjusted EBITDA rose 10.9% to €1,009.3 million; adjusted EBIT up 12.8% to €605.6 million; adjusted net profit after minorities reached €361.7 million, up 14.2% year-over-year.

• Adjusted total revenues reached €1,309.3 million, down 4.4% year-over-year, mainly due to the end of the Superbonus.

• Operating cash flow was €712.9 million, up €314.8 million year-over-year, more than covering technical investments.

• Net debt stood at €6,904.7 million at 30 September 2024, in line with expectations.

• Technical investments totaled €549.7 million, down 6.7% year-over-year, focused on network development and digitalization.

Outlook and guidance

• Full-year guidance for EBITDA and EBIT confirmed; CapEx expected slightly below €900 million.

• The 2i Rete Gas acquisition closing is expected in H1 2025, with financing via a bridge loan and €1 billion rights offering.

• Strategic Plan 2024-2030 targets further investment in network development, digitization, and AI adoption, supporting energy transition and sustainability goals.

• Continued focus on water sector growth and energy efficiency as key drivers for achieving energy transition objectives.

• Positive operating cash flow generation expected to continue, with strong gas distribution and water segments offsetting ESCO slowdown.