Italgas (IG) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA, EBIT, and net income grew double digits year-over-year, driven by strong gas distribution and water performance, offsetting the end of the Superbonus incentive.

• The 2i Rete Gas acquisition is fully integrated, supporting strategic objectives and positioning the company as a European leader in gas distribution.

• Positive contributions from Greece and the water business, with Greece delivering nearly €100 million in EBITDA and water segment expansion through Acqua Campania.

• Operating cash flow nearly doubled year-over-year, reflecting normalization after last year's Superbonus-driven cash absorption.

• Italian gas distribution fundamentals remain robust, with ongoing network digitization and infrastructure development.

Financial highlights

• Adjusted EBITDA rose 10.9% to €1,009.3 million; adjusted EBIT up 12.8% to €605.6 million; adjusted net profit after minorities reached €361.7 million, up 14.2% year-over-year.

• Adjusted total revenues reached €1,309.3 million, down 4.4% year-over-year, mainly due to the end of the Superbonus.

• Operating cash flow was €712.9 million, up by more than €300 million compared to the same period last year.

• CapEx/technical investments totaled €549.7 million, 6.7% lower year-over-year, focused on network development and digitization.

• Net financial debt stood at €6,904.7 million at 30 September 2024, in line with expectations.

Outlook and guidance

• Full-year guidance confirmed, with CapEx expected to be slightly below €900 million.

• The acquisition of 2i Rete Gas is expected to close in H1 2025, with financing via a bridge loan and €1 billion rights offering.

• Strategic Plan 2024-2030 targets further investment in network development, digitization, and AI adoption, supporting energy transition and sustainability goals.

• Energy efficiency business expected to deliver higher revenues and EBITDA in 2025.

• Physical targets for network digitization and expansion are on track.