Italgas (IG) Q4 2024 earnings summary

Executive summary

• Achieved 32 consecutive quarters of growth, driven by digital transformation and strategic acquisitions, notably 2i Rete Gas and Acqua Campania, positioning the group as a European gas distribution leader and unlocking significant value for stakeholders.

• FY 2024 saw strong operational and financial performance, with double-digit growth in EBITDA, EBIT, and Net Income (adjusted), and results in line with the strategic plan.

• Board proposed a dividend of €0.406 per share for 2024, up 15.3% from 2023 and over 50% higher than last year, reflecting a strong dividend policy.

• Cash flow from operating activities exceeded €1 billion for the first time, ensuring full coverage of investments and most dividend payments.

• Sustainability and ESG performance recognized externally, with significant reductions in emissions and energy consumption.

Financial highlights

• Adjusted revenues rose to €1,778.8 million (+0.2% year-over-year); regulated revenues in Italy up €164.9 million.

• Adjusted EBITDA increased 14.1% to €1,350.9 million, at the top of guidance.

• Adjusted net income grew 15.2% to €506.6 million.

• Operating cash flow nearly doubled to €1,098.7 million, enabling full coverage of CapEx, M&A, and most of the €285 million dividend payment.

• CapEx was €887.0 million, slightly lower than 2023 but in line with guidance.

Outlook and guidance

• Guidance for 2025 will be issued with the first quarter results, as the updated strategic plan is scheduled for September/October.

• Closing of the 2i Rete Gas acquisition expected before summer 2025, pending antitrust approval.

• Four gas tenders expected in Italy in 2025, though some may be delayed.

• Strategic focus on digital transformation, AI adoption, and infrastructure development in Italy and Greece.

• Continued growth expected in water and energy efficiency sectors.