Italgas SpA (ITGGF) Q1 2025 Earnings Call Highlights: Strong Financial Performance Amid ...

GuruFocus News

Thu, May 8, 2025, 12:09 AM 4 min read

• Net Income Adjusted Level: Increased by much than 12% contempt higher financing costs and taxes.

• Debt Reduction: Reduced by much than EUR 200 cardinal successful the archetypal quarter.

• CapEx: Reached EUR 165-166 million, somewhat higher than the archetypal 4th of 2024.

• EBITDA Growth: Increased by astir 6% compared to the archetypal 4th of past year.

• EBIT Growth: Increased by 17% compared to past year.

• Net Financial Expenses: Increased by EUR 7.5 million.

• Operational Cash Flow: EUR 412 million, allowing a simplification successful indebtedness of much than EUR 200 million.

• Net Debt: Reached EUR 6.56 cardinal including IFRS 16, oregon EUR 6.47 cardinal excluding IFRS 16.

• Cost of Debt: Around 1.7% for the quarter.

• Guidance for 2025: Adjusted revenues astir EUR 2.45 billion; EBITDA betwixt EUR 1.8 and EUR 1.85 billion; EBIT betwixt EUR 112 and EUR 116 billion; Technical concern astir EUR 1.2 billion; Net indebtedness expected to beryllium beneath EUR 11 cardinal by year-end.

• Warning! GuruFocus has detected 11 Warning Signs with ITGGF.

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Italgas SpA (ITGGF) successfully closed the acquisition of 2i Rete Gas up of schedule, marking a important milestone for the company.

• The institution reported a 12% summation successful nett income astatine the adjusted level, demonstrating resilience contempt higher financing costs and taxes.

• Debt was reduced by much than EUR200 cardinal successful the archetypal quarter, benefiting from coagulated currency travel from operations.

• The institution is connected way with its integer transformation, nearing completion of its integer plus projects.

• Energy ratio concern is showing maturation again, with an summation successful EBITDA margin, indicating a unchangeable and coagulated concern model.

• The WACC approved by the regulator is 20 ground points little than what was assumed successful the strategical plan, impacting fiscal expectations.

• Energy depletion accrued by astir 5% owed to little wintertime temperatures, starring to higher state organisation and CO2 emissions.

• The institution faces challenges with the antitrust disposal process, which is expected to implicit by October 2025, with impacts materializing successful aboriginal 2026.

• There is uncertainty regarding the timing of concession tenders, peculiarly for the Rome concession, which remains unresolved.

• The integration of 2i Rete Gas involves complexities, specified arsenic terminating existing contracts for outer services, which whitethorn hold outgo synergies.

Q: Can you supply much details connected the publication of 2i Rete Gas to the 2025 guidance and the synergies expected? A: The publication of 2i Rete Gas is positive, and the woody is expected to beryllium EPS accretive successful 2025. We expect astir EUR10 cardinal successful synergies, which are up of docket owed to the merger of Italgas Rete and 2i Rete Gas by July 1, 2025. The synergies are expected to beryllium much than conscionable the sum of the parts.