Naturgy Energy Group (NTGY) H1 2025 earnings summary

Executive summary

• Achieved record financial and operational performance in H1 2025, with EBITDA at €2,848m and net income up 10% to €1,147m, demonstrating resilience amid macroeconomic uncertainty and no extraordinary items.

• Completed a €2.3bn tender offer/share buyback, increasing free float, treasury stock to 10%, and supporting re-entry into MSCI indexes.

• Announced a first 2025 interim dividend of €0.60/share, exceeding consensus and adjusted for treasury stock.

• Strategic Plan 2025-2027 execution is on track, focusing on value creation, growing dividends, and capital discipline.

• 2025 guidance for EBITDA and net income set above analyst consensus.

Financial highlights

• EBITDA for H1 2025 reached €2,848m, maintaining record levels; net income was €1,147m, up 10% year-over-year.

• Net sales rose 9.8% to €9,961m; gross margin increased to €3,849m.

• Free cash flow after minorities surged 90.8% to €1,280m.

• Capex totaled €897m, with growth capex over 60% of total; net debt increased to €13,689m, mainly due to the share buyback.

• Dividend of €576m distributed, reflecting a 10% treasury stock position.

Outlook and guidance

• 2025 guidance: EBITDA above €5.3bn, net income above €2bn, both exceeding consensus.

• Dividend per share projected between €1.7 and €1.9, with a floor of €1.7 and target of €1.9 by 2027.

• Net debt expected below €14.7bn by year-end, with net debt/EBITDA ratio around 2.6x.

• Capex for 2025-27 planned at €6.4bn, with 50% to networks and 30% to renewables.

• H2 2025 expected to show stable gas and electricity margins, with continued energy price volatility.