Terna (TRN) Q3 2024 earnings summary

Executive summary

• Achieved double-digit growth in revenues, EBITDA, and net income for the first nine months of 2024, with revenues at €2,647.4 million (+17.8%), EBITDA at €1,892.2 million (+21.6%), and net profit at €812.6 million (+26.6%).

• Accelerated capex to €1,699.2 million (+18.5%), supporting energy transition, digitalization, and strategic projects including the Rome HV grid acquisition.

• Interim dividend for 2024 set at €0.1192 per share, up 4% from 2023, in line with the 2024-2028 Industrial Plan.

• Net debt decreased to €10,017.7 million from €10,494.3 million at year-end 2023, supported by strong operating cash flow and hybrid bond issuance.

• Secured €400 million EIB loan and €800 million in ESG-linked credit facilities to support network renewal and sustainability.

Financial highlights

• Revenues rose 18% year-over-year to €2,647 million for 9M 2024; EBITDA increased 22% to €1,892 million; EBIT up 28% to €1,257 million.

• Net income reached €813 million, up 27% year-over-year.

• Capex totaled €1.7 billion, up 19%, with 61% allocated to development projects.

• Net debt at September-end was €10 billion, €500 million lower than year-end 2023.

• Free cash flow to equity was €116 million after €1,699.2 million capex.

Outlook and guidance

• 2024 revenue guidance raised to €3,610 million, EBITDA to €2.5 billion, and EPS to €0.52, with capex target confirmed at €2.6 billion.

• Out-of-base incentives for 2024 expected slightly above €300 million, with the current framework ending this year.

• Dividend policy ensures at least 4% annual growth, with 2024 payout based on the higher of 4% growth or 75% payout ratio.

• Focus remains on delivering the 2024-2028 Industrial Plan, integrating renewables, and grid digitalization.

• Regulatory changes (ARERA) expected by year-end; output-based incentives to end in 2024.