Italgas (IG) Q3 2025 earnings summary

Executive summary

• Strategic plan to 2031 unveiled after acquiring 2i Rete Gas, making the group Europe's largest gas DSO, 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 and integration of 2i Rete Gas.

• The plan emphasizes innovation, digital transformation, energy transition, and operational efficiency, with core businesses in gas distribution (Italy and Greece), water services, and energy efficiency.

• EUR 16.5 billion investment planned over seven years, targeting double-digit EBITDA and EPS growth from 2024, and a robust financial structure with deleveraging starting in 2028.

• Integration of 2i Rete Gas completed in record time, with process and IT alignment, territorial reorganisation, and EUR 250 million in targeted cost synergies.

Financial highlights

• Total revenues for 9M 2025 reached €1,854.9 million, up 42.8% year-over-year, with adjusted EBITDA up 35.6% to €1,368.9 million and adjusted EBIT up 45.2% to €879.6 million.

• Net profit attributable to the group increased 36.8% to €494.9 million; CapEx for the period at €773.3 million, up 40.7% from last year.

• Operational cash flow exceeded €1 billion, covering CapEx and part of the dividend.

• Net financial debt reached €11,108.2 million, mainly due to the 2i Rete Gas acquisition, partially offset by a €1,020 million capital increase.

• Technical investments focused on digitization and network development, with 634 km of new gas networks built.

Outlook and guidance

• 2025 guidance improved: adjusted revenues €2.5 billion, adjusted EBITDA €1.87 billion, adjusted EBIT €1.19 billion, CapEx around €1.2 billion, net debt (excl. IFRS 16) €10.8 billion.

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

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

• Opex efficiencies and synergies from 2i Rete Gas integration expected to continue, with regulatory updates and RAB growth in Italy offsetting lower allowed WACC.

• Focus on digital innovation, sustainability, and operational efficiency post-acquisition, with continued investment in smart technologies, automation, and AI.