Terna (TRN) Q4 2024 earnings summary

Executive summary

• The 2024-2028 plan features record investments of €17.7 billion, a 7% increase over the previous plan, with over €2.3 billion in projects authorized in 2024 and all major economic indicators exceeding guidance.

• Major projects such as Tyrrhenian Link, Adriatic Link, and SA.CO.I.3 have commenced, and a portion of the Rome HV grid was acquired.

• The company reinforced its sustainability leadership, maintaining Dow Jones Sustainability Index inclusion and setting new climate targets, with a commitment to Net Zero by 2050.

• Strategic priorities include grid efficiency, digitalization, resilience, and integration of renewables and storage.

• Strong focus on decarbonization, energy independence, and grid resilience to address climate change and extreme weather events.

Financial highlights

• 2024 revenues rose 15% to €3,680.2 million, EBITDA up 18.3% to €2,566.4 million, and net income up 20% to €1,061.9 million year-over-year.

• CapEx reached €2,692.1 million in 2024, up 17.6% from 2023, with net debt at €11,160.4 million at year-end.

• Regulated revenues grew 16% to €3,096.2 million; non-regulated and international revenues up 13% to €584 million.

• Dividend per share for 2024 proposed at €0.3962, with a 75% payout and a new policy setting this as the floor for future dividends.

• Double-digit growth in all P&L lines, exceeding guidance.

Outlook and guidance

• 2024-2028 plan raises regulated investments to €16.6 billion, with cumulative CapEx set at €17.7 billion.

• Revenues projected to grow from €4.03 billion in 2025 to €5.19 billion in 2028; EBITDA from €2.7 billion to €3.36 billion; net income to reach €1.19 billion in 2028.

• Dividend policy ensures a minimum floor at 2024 levels or 4% annual growth from 2023.

• Net profit growth target improved to 6% CAGR over the plan period.

• Focus remains on delivering the Industrial Plan, integrating renewables, and enhancing grid security and digitalization.