A2A S.p.A.

A2A reported H1 2025 revenue of about EUR 7 billion, up more than 13% year over year, reported EBITDA of EUR 1.22 billion, and net ordinary income of EUR 426 million. Reported net profit was EUR 434 million, with management saying EBITDA was down versus H1 2024 because of an extraordinary hydroelectric benefit last year; excluding that hydro effect, EBITDA would have been up 2% and net profit up 1%. CapEx in the semester was around EUR 700 million, including EUR 403 million of development CapEx, and management said full-year CapEx should reach EUR 1.7 billion-EUR 1.8 billion, up 23% versus last year. The company confirmed 2025 guidance at the upper end: EUR 2.2 billion EBITDA and EUR 0.7 billion ordinary net income.

Renato Mazzoncini framed H1 as proof that A2A’s industrial plan is executing well, especially its shift toward electricity grids, regulated/quasi-regulated activities, and electrification-led growth. He highlighted the Enel asset integration, the EUR 430 million gas-network sale, the 17-year LNG supply deal with BP, the Sesto San Giovanni district-heating concession, and the first liquid-cooled data center pilot as evidence that the portfolio is becoming more resilient and more exposed to growth opportunities. His tone was upbeat but disciplined, repeatedly stressing that growth is being funded through CapEx and that the company is staying prudent on guidance.

Luca Moroni detailed the segment drivers: Smart Infrastructure contributed EUR 62 million, Circular Economy EUR 19 million, while Generation & Trading and Market were pressured by the hydro comparison and the safeguarded market loss. He said net financial expenses were EUR 85 million, depreciation and amortization were EUR 469 million, operating profit was EUR 635 million, and cash flow from operations was EUR 1.1 billion, enabling investment and dividends with EUR 126 million of net cash flow after those uses. He also said leverage improved to 2.3x, helped by the Ascopiave proceeds, and that cash conversion was 65%.

Analysts focused on the electricity distribution concession renewal, hydro volumes, spark spreads, district heating regulation, data centers, receivables, and the ARERA market-manipulation review. Management said the electricity concession timing depends on a new ARERA board, with news expected in September, and that any concession fee was not included in the last plan because the rules were not yet defined. On hydro, A2A said it expects about 4.1 TWh for the year and remains comfortable on generation because 70% of 2025 output is hedged and about 40% of 2026 is already hedged at EUR 113. On the ARERA probe, management said any sanction would not be material; on receivables, Luca Moroni said the seasonality-driven increase is normal, with about EUR 300 million tied to the safeguarded market and EUR 60 million of one-off cash expected.