Terna (TRN) H1 2024 earnings summary

Executive summary

• Achieved double-digit growth in all main financial indicators and capex for H1 2024, reinforcing leadership in energy transition and sustainability.

• Sustainability integrated into the industrial plan, with recognition from rating agencies and inclusion in global ESG indices.

• Major infrastructure projects, including Italy-Tunisia interconnection, Tyrrhenian Link, SACOI3, and Adriatic Link, are fully authorized and progressing.

• Grid development and digitalization, supported by the TE.R.R.A. platform, remain key drivers for sustainable growth.

• CapEx execution is a core agenda, with over 80% authorized and 75% covered by procurement contracts.

Financial highlights

• Group revenues reached €1,754.4 million in H1 2024, up 18.1% year-over-year; EBITDA rose 23.4% to €1,267 million; EBIT up 31% to €836.1 million.

• Net income was €545 million, a 32% increase compared to H1 2023.

• CapEx hit a record €1,042 million, up 26% year-over-year.

• Net debt at end of June 2024 was €10,329 million, down from €10,494 million at year-end 2023.

• Operating cash flow of €931 million covered almost all CapEx spending.

Outlook and guidance

• 2024 guidance fully confirmed, with continued focus on executing the 2024-2028 industrial plan and maintaining financial stability.

• 2024 revenue expected at €3.55 billion, EBITDA at €2.42 billion, and EPS at €0.49.

• CapEx for 2024 projected at approximately €2.6 billion.

• WACC for 2025-2027 expected to remain in line with the strategic plan assumption of 5.5%.

• Cost of debt for full year 2024 expected around 2.5%.