Snam (SRG) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 adjusted EBITDA of €761M (+8.3% YoY) and adjusted net income of €406M (+21.2% YoY), driven by regulated revenue growth and higher associate contributions.

• Reported net profit reached €491M (+45.7% YoY), including a €120M capital gain from the ADNOC stake sale.

• Completed key transactions: Edison Stoccaggio acquisition, ADNOC Gas Pipelines stake sale, and agreement to acquire 24.99% of Vier Gas Holding (OGE).

• Launched Ravenna LNG terminal operations and secured 14 new biomethane projects, advancing energy transition and pan-European infrastructure.

• S&P upgraded credit rating to A-; Moody's and Fitch affirmed ratings; Sustainable Finance Framework updated.

Financial highlights

• Revenues rose to €970M (+8.3% YoY), with regulated revenues up 9.0% to €871M.

• EBITDA grew to €761M (+8.3% YoY); EBIT reached €502M (+11.6% YoY); reported net profit was €491M (+45.7% YoY).

• Investments totaled €361M–€300M, down 22% YoY, reflecting project completions and M&A activity.

• Net financial debt increased to €16,798M, reflecting investments and dividend payments.

• Cash flow from operations was €779M, with free cash flow at €25M after investments and dividends.

Outlook and guidance

• Confidently on track to meet full-year 2025 guidance, supported by regulatory updates and OGE acquisition.

• Net debt guidance confirmed, assuming hybrid bond issuance for OGE stake financing.

• Associates' contribution expected to approach €370M for FY 2025, including OGE.

• Interest rates anticipated to decline; average net debt cost expected to remain around 2.5–2.6%.