Redeia (REE) Q4 2024 earnings summary

Executive summary

• 2024 was marked by a challenging environment, with revenues down by over 12% due to regulatory changes and the end of pre-98 asset life, but record TSO investments exceeded €1.1 billion, up 34%, supporting Spain's energy transition.

• The company divested nearly 90% of Hispasat for €725 million, consolidating its focus on regulated core infrastructure and strengthening its financial position.

• Sustainability remained central, with nearly 80% compliance on the 2030 plan, top ESG ratings, and recognition in major global indices.

• Maintained leadership in renewable integration, with renewables covering 56.8%–57% of Spain's electricity mix and a third consecutive year of net electricity exports.

• Maintained A- credit rating with a stable outlook.

Financial highlights

• Net profit for 2024 was €368.4 million, down 46.6% due to the Hispasat sale and pre-98 asset effects; excluding these, profit would have exceeded €500 million.

• EBITDA reached €1.21 billion, down 12.4% year-over-year, but up 7.8% on a like-for-like basis excluding pre-98 asset impact.

• Revenues declined 12.3%–12.4% year-over-year to €1,594.2–€1,648 million, mainly due to the end of the useful life of pre-98 assets; without this, revenues grew 1.7%.

• Net financial debt at year-end was €5,370 million, up 7.9% from 2023.

• Dividend floor of €0.80/share maintained for 2024 and 2025.

Outlook and guidance

• 2025 investment is projected to exceed €1.4 billion, with cumulative 2021–2025 investment above €4.2 billion.

• Estimated 2025 EBITDA is above €1.25 billion, and net profit is expected to surpass €500 million.

• Net debt is forecast to rise due to high CapEx but will be offset by the €725 million Hispasat sale proceeds.

• Dividend policy reaffirmed with a proposed €0.80/share for 2024 and 2025.

• Focus on regulated electricity business and execution of the 2025–2030 investment plan to support Spain's energy transition.