A2A S.p.A.

A2A reported H1 2025 revenue of EUR 7 billion, up about 13% year over year. Reported EBITDA was EUR 1.22 billion, while net ordinary income was EUR 426 million and net income was EUR 434 million, both down 11% reported; management said EBITDA would have been up 2% and net income up 1% on an adjusted basis excluding the exceptional H1 2024 hydro effect. The company said H1 CapEx was more or less EUR 700 million, including EUR 400 million of development CapEx, and cash flow from operations was EUR 1.1 billion. Full-year guidance was confirmed at the upper end: EUR 2.2 billion EBITDA and EUR 0.7 billion of net ordinary income; leverage is expected to end 2025 around 2.4x-2.5x.

Renato Mazzoncini framed the quarter as evidence that A2A is executing its long-term plan, especially by rotating toward regulated power networks, expanding CapEx in grid infrastructure, and improving the business mix. He highlighted the Enel asset integration, the EUR 430 million gas-asset sale, the 17-year LNG supply agreement with BP, and the new district heating/data-center opportunities as proof the strategy is broadening and de-risking the portfolio. His tone was confident but cautious on guidance, saying the company chose to be prudent and keep the forecast unchanged despite a strong first half.

Luca Moroni focused on the financial mechanics behind the results: smart infrastructure contributed EUR 62 million of EBITDA, circular economy EUR 19 million, while generation and trading were weaker because of hydro and market conditions. He cited EUR 1.1 billion of operating cash flow, about EUR 200 million of positive working-capital cash flow, EUR 300 million of cash out for taxes and financial expenses, and EUR 126 million of net cash flow after funding investment and dividends. He also pointed to net financial debt falling by EUR 510 million, leverage moving to 2.3x from 2.5x, and cash conversion of plus 65%.

Analysts focused on the electricity distribution concession renewal, hydro volumes, district heating regulation, the data-center opportunity, receivables, and a reported ARERA market-manipulation inquiry. Management said the distribution concession process is waiting on a new ARERA board, with news expected in September, and said any concession fee would not be an added cost because it would sit inside the RAB. On hydro, management said 2025 production should end around 4.1 TWh, with 70% of output hedged and around 40% hedged for 2026, and on the ARERA inquiry they said any eventual sanction would not be material. They also said roughly EUR 300 million of past-due receivables relate to the safeguarded market, with EUR 60 million expected back as a one-off cash inflow.