REN - Redes Energeticas Nacionais (RENE) Q3 2025 earnings summary

Executive summary

• Net profit rose 23.4% year-over-year to €103.9M, driven by improved financial results and lower taxes, despite a 1.3% decrease in EBITDA to €383.6M and a 1.3% drop in total revenues.

• CAPEX surged 52.5% to €324.6M, reflecting major investments in electricity and gas infrastructure, with significant increases in transfers to RAB.

• Net debt (including tariff deviations) decreased 4.9% to €2,441.7M, with the average cost of debt falling to 2.55%.

• Infrastructure construction and new project development remain active, with increased focus on industrial and data center projects.

• Regulatory environment is constructive, with positive developments in draft regulation and tax incentives.

Financial highlights

• EBITDA: €383.6M (-1.3% YoY); Net Profit: €103.9M (+23.4% YoY); CAPEX: €324.6M (+52.5% YoY).

• Net debt (with tariff deviations): €2,441.7M, down 4.9% YoY; average RAB: €3,437.3M (-0.5% YoY).

• Financial results improved by €7.0M (+15.1%), and income tax decreased by €27.2M due to fiscal incentives and tax recovery.

• Depreciation and amortization increased by €9.5M (+5.0%) to €199.5M due to higher gross assets.

• Free cash flow before dividends was €-79.2M, impacted by higher capex.

Outlook and guidance

• Full-year EBITDA is expected to stabilize, with current quarter decreases likely to be offset.

• Investment acceleration is anticipated, especially in electricity transmission, with some CapEx delayed to 2026.

• Net debt is projected to decrease further by year-end, maintaining a maturity profile around five years.

• Ongoing focus on innovation, digitalization, and sustainability, with continued infrastructure adaptation for renewable gases.

• Investment plan presented to Parliament, emphasizing decarbonization and digital transformation.