Snam (SRG) Q2 2025 earnings summary

Executive summary

• Adjusted EBITDA rose 5.3% and adjusted net income/net profit increased 8.5% year-over-year in H1 2025, driven by regulated revenues, associate contributions, and strong investments totaling €1.1 billion.

• Gas demand in Italy rebounded 6% year-over-year after four years of decline, with thermoelectric sector demand up 12% and LNG imports rising over 30%, now accounting for more than 30% of total imports.

• Strategic infrastructure projects advanced, including Adriatic Line (35% complete), new LNG terminals, and FSRU Ravenna, supporting energy security and supply diversification.

• Sustainability initiatives progressed: 32% of CapEx EU taxonomy-aligned, 61% SDG-aligned, sustainable finance at 86%, and 2025E Scope 1 & 2 emissions down 20% vs 2022.

• Issued first US dollar Sustainability-Linked bond ($2bn) and Green Bond (€1bn), raising sustainable funding to 86%.

Financial highlights

• Adjusted EBITDA reached €1,492 million (+5.3% yoy), adjusted net income €750 million (+8.5% yoy), and reported net profit €773 million (+21.9% yoy), driven by regulated revenues and associate contributions.

• Total revenues were €1,906 million (+5.9% yoy); operating expenses increased 8.4% to €414 million.

• Investments totaled €1,122 million, in line with H1 2024.

• Net debt stood at €17,580 million, up €1,342 million from December 2024, with average cost of debt stable at ~2.5%.

• Cash flow from operations was €1,118 million, with EBITDA/FFO cash conversion at 78%.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: EBITDA €2,850 million and adjusted net income €1,350 million, with management expecting to meet or exceed targets.

• Associates' full-year contribution expected at €360–365 million, assuming OGE contribution in Q4.

• 2025 Tariff RAB increased to €26.2 billion; OGE acquisition expected to contribute from Q4 2025.

• Financing for OGE acquisition planned via asset rotation or hybrid instrument issuance.

• Italian gas demand projected to rise in 2025, driven by higher gas-fired power generation and civil sector consumption.