Iren (IRE) investor relations material

Executive summary

• EBITDA grew 1% year-over-year to €732 million, with 72–73% from regulated and semi-regulated activities, demonstrating portfolio stability despite adverse weather and market competition.

• Efficiency synergy plan delivered €11 million in benefits, reaching 55% of the annual target.

• Cash generation of €520–530 million enabled funding of €409–410 million in investments and shareholder remuneration, with cost of debt stable at 2.36–2.4%.

• Performance was partially offset by unfavorable weather impacting hydroelectric output and extraordinary maintenance.

• Sustainability and responsible growth remain central to the industrial strategy.

Financial highlights

• Revenues declined 6.6–7% year-over-year to €3,257 million, while EBITDA rose 1% to €732 million.

• EBIT decreased 2–2.4% to €318–318.5 million; group net profit slipped 1% to €181.8–182 million.

• Net financial debt increased by 1–1.3% to €4,275.9–4,276 million, mainly due to dividend payments and seasonal working capital rise.

• Technical investments rose 4% to €409–410 million.

• Operating cash flow was €512–530 million, fully funding investments.

Outlook and guidance

• Growth for 2026 expected mainly in H2, especially Q4, with continued network investment and stable EBITDA excluding one-offs.

• Revised 2026 guidance: hydroelectric production cut from 1,200 GWh to 1,050 GWh, EBITDA growth of ~3%, net income growth of ~2%, technical investments of ~€950 million, and net debt/EBITDA at ~3.1x.

• Efficiency synergy plan expected to generate €20 million in benefits by year-end.

• Investments for 2026 planned at nearly €1 billion, focusing on regulated sectors and infrastructure modernization.

• Key risks include commodity price volatility, inflation, interest rate increases, and regulatory changes.