Q1 2025 results
Rome, 13th May 2025
Q1 2025: enlarged regulated perimeter and optimized organization
Energy Transition
Circular Economy
Energy
-
Lowering risk profile
Generation
-
4.6 GW awarded in the Capacity Market auction for 2027 delivery
-
Closed PPAs BUY and SELL for
~800 GWh
Market
Mass Market PPA: ~100k customers
Smart Infrastructures
-
Consolidation of electricity networks in Lombardy
Approved ~1.5k EV City Plugs by the Milan Council to be installed by year-end
Partnership for E-mobility development with Metro Italia to install 156 charging points at 33 shops in 14 regions
Circular Economy
-
Integration of Waste, Water and
District Heating
Conversion of 2 biogas plants to
biomethane, awarded by GSE 2
(7 already awarded in 2024)
New water treatment plant
inaugurated in Calvisano (BS)
Acquisition of a cogeneration plant
(110 MW) in Sesto San Giovanni
% of EBITDA from regulated activities(1) increased from 25% in Q1 2024 to 31% in Q1 2025
1st Issuer of an EU Green Bond
under the new Regulation
Achieved NZ-3 score in Moody's Net Zero Assessment
(1) Electricity and gas networks, water cycle, district heating, collection and regulated treatment
Q1 2025 Results: resilient performance and lower NFP
Key Financial Indicators (€M)
Revenues
EBITDA
+1%
*
2.4x
2.5x
NFP/EBITDA
net of exceptional hydro production effect in Q1 2024
Ordinary EBITDA
+1%
Group Net Income
Ordinary Group Net Income
Net Financial Position *
-5%
net of exceptional hydro production effect in Q1 2024,
-7%
Net of 5€M
related to the effects of
the price adjustment referring to the acquisition of the stake in Tecnoa (WtE Crotone) that occurred in previous years
Note:
(*) EBITDA rolling
Contribution from exceptional hydro production
3
Q1 2025 results: CapEx
€M
Breakdown by Activity Breakdown by BU
25%
75%
Breakdown by SDGs
47%
72%
Breakdown by EU Taxonomy
Breakdown by Circular Economy & Energy Transition
21%
79%
Other Capex
4
Q1 2025 Group EBITDA: expected normalization of 2024 exceptional effects
-25%
-16%*
-1%
+5%
+39%
+
-
Thermoelectric production
-
Capacity market
-
Regulated revenues
-
Electricity network
(Duereti) consolidation 5
-
-
Hydro production
-
Lower hedging prices
Note:
(*) 2024 pro forma consistent with the new organizational structure (BU Circular Economy)
Generation & Trading: diversification of sources and Capacity Market allowing performance consistency
EBITDA €M
Hydro, Wind & Solar production (GWh)
Thermal Production (GWh)
-
RES: normalization of hydro production and lower hedging prices
-
Flexibility: higher CCGT production and Capacity Market, less opportunities for gas supply optimization
Contribution from exceptional hydro production
6
Market: stable EBITDA despite loss of Safeguard market
EBITDA €M
Safeguard
-12 €M
Customer Base Mass Market (#/000)
Total Electricity Sales (TWh)
-
Higher mass market segment contribution thanks to electricity
customer base increase and lower retention costs
-
Lower contribution of large customers' segment and loss of Safeguard
-
Higher investments in phygital PoS
Total Gas Sales (Bcm)
7
Circular Economy: effective performance of WTEs and DH networks
EBITDA €M
ELECTRICITY ENERGY SALES (GWh)
WTE and other plants Cogeneration
WASTE DISPOSAL FOR ENERGY RECOVERY (kton)
HEAT VOLUMES (GWht)
Waste and District Heating : higher prices and increase in heat volumes
Collection: new collection services in Milan after tender won
8
Smart Infrastructures: growth driven by Duereti consolidation and organic RAB increase
EBITDA €M
RAB EE (€M)
WACC
6.0%
5.6%
Power Network Capacity 8,376 MVA +56% yoy
RAB GAS (€M)
WACC
Regulated Networks: Duereti consolidation and higher allowed revenues thanks to
capex deployment Increasedpower network capacity and resilience
6.5%
5.9%
9
Q1 2025 results: from EBITDA to Net Income
€M
(*)
2022 (*) 1,498 -722 -2 -92 2 -90 594 -174 7 -47 380 21 401
Q1 2024
703
-216
-22
1
-32
434
-127
-13
294
0
294
Increase in D&A driven by higher capex
Tax rate @ 29%
EU Green Bond issuance and bridge loan for electricity grid acquisition
10
31.12.2024
NFP NFP/EBITDA
5,835 €M 2.5x
Q1 2025 results: net free cash flow
€M
-
(-) Higher retail receivables due to seasonality effect
-
(+) Lower Safeguard cluster receivables
31.03.2025
NFP NFP/EBITDA
5,616 €M 2.4x
Cash Conversion(1)>60% led higher cash generation compared to 1Q24
Capex fully financed through OCF
(*) Change in Working Capital includes also other Assets and Liabilities and Use of Funds Notes: (1) (OCF - maintenance CAPEX) / EBITDA
11
2025 Guidance confirmed
EBITDA
12
2.17 - 2.20 €B
Ordinary Net Income*
0.68 - 0.70 €B
*Excluding non-recurring items
Shaped to move forward in a dynamic context
Diversified generation asset portfolio, responsive to market opportunities
Strong brand awareness to secure customer base
Treatment plants providing solutions to achieve 2035 EU targets
Electricity grid development to enhance capacity and resilience
Financial flexibility to seize opportunities and face challenges
Securing the achievement of Plan Targets
Capex deployment supported by an effective supply chain
13
Q&A
14
Annexes
15
EBITDA breakdown by Business Unit
|
Q1 2025 Reported Ordinary |
Q1 2024* Reported Ordinary |
Reported |
Change |
Ordinary |
||||
|
A2A |
675 |
672 |
703 |
699 |
-28 |
-4% |
-27 |
-4% |
€M
|
Generation & Trading |
224 |
223 |
298 |
298 |
-74 |
-25% |
-75 |
-25% |
|
RES |
140 |
140 |
184 |
184 |
-44 |
-24% |
-44 |
-24% |
|
Flexibility |
84 |
83 |
114 |
114 |
-30 |
-26% |
-31 |
-27% |
|
Market |
133 |
132 |
135 |
134 |
-2 |
-1% |
-2 |
-1% |
|
Energy Retail |
133 |
132 |
135 |
134 |
-2 |
-1% |
-2 |
-1% |
|
o/w Electricity Contribution Margin |
87 |
87 |
94 |
94 |
-7 |
-7% |
-7 |
-7% |
|
o/w Gas Contribution Margin |
109 |
109 |
99 |
99 |
10 |
10% |
10 |
10% |
|
o/w Operating costs and other |
-63 |
-64 |
-58 |
-59 |
-5 |
9% |
-5 |
8% |
|
Energy Solutions |
0 |
0 |
0 |
0 |
0 |
n.s. |
0 |
n.s. |
|
Circular Economy |
202 |
201 |
194 |
191 |
8 |
4% |
10 |
5% |
|
Collection |
11 |
11 |
14 |
13 |
-3 |
-21% |
-2 |
-15% |
|
Treatment |
108 |
107 |
103 |
103 |
5 |
5% |
4 |
4% |
|
District Heating |
64 |
63 |
57 |
56 |
7 |
12% |
7 |
13% |
|
Water Cycle |
19 |
20 |
20 |
19 |
-1 |
-5% |
1 |
5% |
|
Smart Infrastructures |
122 |
122 |
89 |
88 |
33 |
37% |
34 |
39% |
|
Electricity Networks |
72 |
72 |
39 |
39 |
33 |
85% |
33 |
85% |
|
Gas Networks |
43 |
43 |
43 |
43 |
0 |
0% |
0 |
0% |
|
Smart City |
2 |
2 |
2 |
2 |
0 |
0% |
0 |
0% |
|
Public Lighting |
6 |
6 |
5 |
4 |
1 |
20% |
2 |
50% |
|
E-Moving |
-1 |
-1 |
0 |
0 |
-1 |
n.s. |
-1 |
n.s. |
|
Corporate |
-6 |
-6 |
-13 |
-12 |
7 |
n.s. |
6 |
n.s. |
Note:
(*) 2024 pro forma consistent with the new organizational structure (BU Circular Economy)
16
Q1 2025 VS Q1 2024: profit & loss
€M
|
Q1 2024 |
Q1 2025 |
Delta vs 2024 |
Delta % vs 2024 |
||||
|
Revenues |
3,425 |
3,968 |
543 |
16% |
|||
|
Operating costs |
-2,507 |
-3,063 |
-556 |
22% |
|||
|
Staff costs |
-215 |
-230 |
-15 |
7% |
|||
|
EBITDA |
703 |
675 |
-28 |
-4% |
|||
|
D&A |
-216 |
-234 |
-18 |
8% |
|||
|
Provisions |
-22 |
-26 |
-4 |
18% |
17 |
||
|
ORDINARY EBIT |
465 |
415 |
-50 |
-11% |
|||
|
Net Financial Expenses |
-32 |
-42 |
-10 |
31% |
|||
|
Associates & JV |
1 |
1 |
0 |
n.s. |
|||
|
ORDINARY EBT |
434 |
374 |
-60 |
-14% |
|||
|
Taxes |
-127 |
-109 |
18 |
-14% |
|||
|
Minorities |
-13 |
-13 |
0 |
0% |
|||
|
Group Ordinary Net |
Income |
294 |
252 |
-42 |
-14% |
||
|
+/- Special Items |
0 |
5 |
5 |
n.s. |
|||
|
Group Net Income |
294 |
257 |
-37 |
-13% |
|||
Q1 2025 VS Q1 2024: balance sheet
€M
FY 2024
Q1 2025
∆ vs
FY 2024
Tangible Assets 7,517 7,534 17
Intangible Assets 4,299 4,352 53
Shareholdings and Other Non Current Financial Assets 100 136 36
Other Non Current Assets/Liabilities -67 -22 45
Deferred Tax Assets and Liabilities 549 551 2
Provisions for Risks, Charges and Liabilities for landfills -854 -859 -5
Employee Benefits
-214
-211
3
Net Fixed Capital 11,330 11,481 151
Net Working Capital 277 776 499
Other Current Assets/Liabilities -88 -598 -510
Working Capital and Other Current Assets/Liabilities 114 -3 -117
Current Tax Assets/Liabilities -75 -181 -106
Total Capital Employed 11,838 11,876 38
Non Curent Assets/Liabilities held for sale 394 398 4
Equity 6,003 6,260 257
Total Sources 11,838 11,876 38
Net Financial Position 5,835 5,616 -219
18
Energy scenario
|
UoM |
Q1 2024 |
Q1 2025 |
Δ% vs 2024 |
|
|
Brent |
$/bbl |
82 |
75 |
-8% |
|
CO2 - EU ETS cost |
€/Tonn |
62 |
75 |
22% |
|
€/$ |
€/$ |
1 |
1 |
-3% |
|
Brent € |
€/bbl |
75 |
71 |
-5% |
48
PSV(1) €/MWh 29
66%
|
PUN Baseload(2) |
€/MWh |
92 |
138 |
50% |
|
PUN Peak(2) |
€/MWh |
102 |
148 |
45% |
|
PUN Off-Peak(2) |
€/MWh |
86 |
133 |
53% |
|
CCGT gas cost(3) |
€/MWh |
77 |
113 |
48% |
|
Spark Spread CCGT_PSV vs Baseload |
€/MWh |
15 |
24 |
61% |
|
Spark Spread CCGT_PSV vs Peakload |
€/MWh |
25 |
34 |
37% |
|
Spark Spread CCGT_PSV vs Off-Peak |
€/MWh |
10 |
19 |
96% |
|
Clean Spark Spread vs Baseload |
€/MWh |
-9 |
-6 |
-41% |
|
Clean Spark Spread vs Peakload |
€/MWh |
0 |
4 |
n.s. |
|
Clean Dark Spread vs Baseload(4) |
€/MWh |
-30 |
3 |
-111% |
Notes:
-
Gas at virtual trading point
-
Hourly average for each month
-
Based on as at virtual trading point with 51% efficiency; includes transport costs
-
35% efficiency - includes cost spread on API2 and transport costs
19
Volumes
|
UoM |
Q1 2024 |
Q1 2025 |
Δ vs 2024 |
Δ% vs 2024 |
|
|
A2A Group Thermal production |
GWh |
1,284 |
2,136 |
853 |
66% |
|
- CCGT production |
GWh |
1,262 |
2,123 |
861 |
68% |
|
- Oil production |
GWh |
22 |
13 |
-9 |
-39% |
|
A2A Group Renewable production |
GWh |
1,334 |
1,095 |
-239 |
-18% |
|
- Hydro production |
GWh |
1,124 |
899 |
-225 |
-20% |
|
- Photovoltaic production |
GWh |
65 |
65 |
0 |
0% |
|
- Wind production |
GWh |
145 |
131 |
-14 |
-10% |
|
Electricity sales |
GWh |
6,187 |
6,516 |
329 |
5% |
|
Gas sales |
Mcm |
1,170 |
1,105 |
-65 |
-6% |
|
Electricity distributed |
GWh |
2,818 |
4,779 |
1,961 |
70% |
|
Gas distributed |
Mcm |
1,144 |
1,170 |
26 |
2% |
|
Collected waste |
Kton |
449 |
450 |
1 |
0% |
|
Waste disposal |
Kton |
1,258 |
1,222 |
-36 |
-3% |
|
- Material recovery |
Kton |
300 |
268 |
-32 |
-11% |
|
- Energy recovery |
Kton |
592 |
615 |
23 |
4% |
|
- Other |
Kton |
367 |
339 |
-27 |
-7% |
|
WTE and other plants electricity sold |
GWh |
528 |
548 |
20 |
4% |
|
Water Distributed |
Mcm |
68 |
16 |
-51 |
-76% |
|
Cogeneration electricity sales |
GWh |
243 |
257 |
14 |
6% |
|
Heat volumes sales |
GWht |
1,371 |
1,452 |
81 |
6% |
20
Financials as of 31st March 2025
Sound financial structure
16%
27%
Q124
Q125
84%
73%
Fix
Float
Duration and Average Cost of debt
Duration
5.6
Years
Cost of debt (1)
2.7%
@Q1 2025
Steady Liquidity Position after acquisition (€M)
Q124 Q125
1,407
1,815
4,067
3,391
2,660
Coverage Ratio (2) > 1.2x
1,576
Coverage Ratio (2) > 1.2x
Cash & Cash Equivalent
Undrawn Committed Lines
|
Agency |
Rating |
Outlook |
|
|
(3) |
BBB |
Stable |
|
|
|
Baa2 |
Stable |
Strong commitment to current credit rating
-
Financial expenses reported / average gross debt (excluding hot money & RCF)
-
This ratio measures the coverage of expected cash flows in the next 12 months given the current Liquidity position and the expected obligations
-
December 2024: S&P's confirms Outlook Stable, S&P has also revised downward the threshold for maintaining the current rating of FFO/Net Debt to 24% from 25%
-
March 2024: Moody's confirms Outlook Stable
21
Indebtedness redemption profile Q1 2025 (€M)
605
19
9
5
7
921
14
4
21
497
497
496
42
39
140
299
397
495
493
112
109
95
57
148
177
27
27
23
86
4
2
3
35
Bonds
Short Term Loan Long Term Loan
647
11
2025 2026 2027 2028 2029* 2030 2031 2032 2033 2034 2035 2036 2037
(*) Not included 750€M Green Hybrid Bond NC5.25
22
Sustainable Finance Highlights
Conventional vs ESG Debt as of 31st March 2025 | %
26%
70%
82%
120%
100%
80%
60%
40%
ESG Debt evolution and Targets
100%
+7%
80%
90%
78%
82%
vs. Q1 2024
18%
18%
56%
20%
0%
44%
58%
FY 2021 FY 2022 FY 2023 FY 2024 Q1 2025 2027 2030 2035
Conventional Debt ESG Debt
Green Bond SLB Green Loan
Financial Strategy linked to Sustainability
Effective
Sustainable Finance Highlights Q1 2025
Inaugural European
-
First instrument to be issued in such a format by
an issuer ever;
-
First issuance under the EMTN Programme approved by the Italian authority (CONSOB).
-
Allocated Proceeds will be 100% aligned
with the EU Taxonomy.
12% 5%
Renewable energy
Green Bond
Size
500 €M
January 2025
Oversub.
4.4x
40%
43%
Networks
Waste collection Energy efficiency
23
Contacts
A2A Investor Relations Team
E-mail: ir@a2a.it 24
Phone: +39 02 7720 3974
https://www.gruppoa2a.it/en/investors
Attachments
Disclaimer
A2A S.p.A. published this content on May 13, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2025 at 13:20 UTC.
