Italgas (IG) Q3 2025 earnings summary

Executive summary

• Strategic plan to 2031 unveiled, following the acquisition and rapid integration of 2i Rete Gas, making the group the largest gas DSO in Europe, serving nearly 13 million customers and managing 160,000 km of network.

• Double-digit growth in all main economic and financial indicators for the first nine months of 2025, driven by the consolidation of 2i Rete Gas and initial merger synergies.

• The plan emphasizes innovation, digital transformation, energy transition, and operational efficiency across gas distribution, water services, and energy efficiency.

• EUR 16.5 billion investment planned over seven years, with double-digit EBITDA and EPS growth expected from 2024.

• Operating cash flow and capital increases supported increased investments and covered capex needs.

Financial highlights

• Nine-month 2025 results: total revenues €1,854.9M (+42.8%), adjusted EBITDA €1,368.9M (+35.6%), adjusted EBIT €879.6M (+45.2%), and adjusted net profit €494.9M (+36.8%).

• Cash flow from operating activities exceeded €1 billion, fully covering investments and part of dividends.

• CapEx for the period reached €773.3M, up 40.7% year-over-year; net financial debt increased to €11,108.2M due to the acquisition.

• 2025 guidance: adjusted revenues €2.5B, adjusted EBITDA €1.87B, adjusted EBIT €1.19B, CapEx €1.2B, net debt €10.8B.

• By 2031, revenues projected at €3.8B, EBITDA at €3B, EBIT at €2B, and RAB surpassing €20B.

Outlook and guidance

• Double-digit EPS growth targeted through 2031, with disciplined capital allocation and improved operational efficiencies.

• Dividend policy extended to 2028, maintaining a 65% payout ratio on adjusted EPS, with a minimum 5% annual increase from 2024 DPS.

• Deleveraging expected to bring net debt/RAB to 60% by 2031, with financial flexibility for further M&A or tenders.

• Opex efficiencies and synergies from 2i Rete Gas integration expected to continue.

• Focus on digital innovation, sustainability, and automation for network management.