Snam (SRG) Q2 2026 earnings summary

Executive summary

• Natural gas remains Italy's largest primary energy source, accounting for 37% of primary energy consumption and generating about half of domestic electricity production, excluding imports.

• Achieved solid financial results in H1 2026, with revenue, EBITDA, and investments growth; FY guidance confirmed and net debt target improved.

• Italy rapidly diversified gas supply, with LNG imports more than doubling since 2021 and now representing 32% of total inflows in H1 2026, supported by new regasification terminals.

• Storage levels in Italy reached 75% by end-July, well above the European average, with a 90% fill target for winter already secured.

• Major acquisition: full control of OLT Offshore LNG Toscana, strengthening LNG regasification capacity.

Financial highlights

• Total revenues reached €2,026 million (+6.3% YoY), with regulated revenues up 4.4% and gas infrastructure revenues at €1,841 million (+5.5%).

• Adjusted EBITDA was €1,572 million (+9% ex one-off; +5.4% reported), and adjusted net income was €733 million (+3% ex one-off; -2.3% reported), supported by organic growth and perimeter expansion.

• Net financial debt stood at €18.8 billion at June-end, up €1.3 billion from December 2025, mainly due to investment activity, dividend payment, and OLT acquisition.

• Investments totaled €1,613 million (+43.8% YoY), with significant allocation to LNG, transport, and OLT acquisition.

• Free cash flow was €678 million, with EBITDA to FFO conversion at 77%.

Outlook and guidance

• Full-year 2026 adjusted EBITDA guidance confirmed at ~€3.1 billion, with adjusted net income expected above €1.45 billion.

• Net debt guidance for year-end 2026 improved to ~€18.9 billion, reflecting better working capital evolution.

• Investments planned at €2.8 billion, with €2.6 billion in gas, CCS, and H2 infrastructure.

• Tariff RAB expected at €28.8 billion, including OLT consolidation.

• Natural gas demand in Italy expected to slightly increase in 2026, with security of supply reinforced by diversified portfolio and LNG growth.