Redeia (REE) Q1 2025 earnings summary

Executive summary

• Revenue rose 3.0% year-over-year to €424M, with EBITDA up 4.4% and net profit up 4.2% to €138M.

• Investments surged 70% to €254M, mainly in TSO projects supporting energy transition and interconnections.

• Proposed dividend of €0.8 per share for 2024, with interim €0.20/share paid in January and final €0.60/share proposed for July.

• Sale of Hispasat finalized and reclassified as discontinued operations, impacting year-over-year comparability.

• Major grid incident on April 28 affected the Iberian Peninsula; supply restored and investigation ongoing.

Financial highlights

• EBITDA margin improved, with EBITDA at €320M (+4.4%) and EBIT at €211M (+6.5%).

• Net debt increased 3.9% to €5,577M, mainly due to higher investments.

• FFO declined 41% due to a prior year tax refund, but would have risen 6% excluding this effect.

• Gross margin (EBITDA margin) at 79.1% of revenue.

• Effective corporate income tax rate at 24.5%, down from 25.0% year-over-year.

Outlook and guidance

• 2025 outlook aligns with strategic plan: EBITDA expected above €1,250M, net profit above €500M, and net debt around €5,700M.

• Net debt/EBITDA targeted below 5x; FFO/net debt above 15%.

• Dividend floor of €0.8 per share reaffirmed.

• Target to have 100% of financial debt under ESG criteria by 2030; currently at 70%.

• Continued acceleration of investment in national regulated business to support energy transition.