Italgas S.p.A.

Adjusted revenue increased 17.5% year over year; Paolo Gallo also described it as nearly 18%, driven by organic growth in Italian gas distribution and the first-time consolidation of 2i Rete Gas. Adjusted EBITDA was above EUR 1 billion, up 25% year over year, with an 81% EBITDA margin; adjusted EBIT exceeded EUR 700 million, up almost 27%; and adjusted net profit reached EUR 398.6 million, up 27.3%. Technical investments were nearly EUR 800 million, up 55%, operating cash flow was EUR 930 million, and net financial debt was slightly lower than year-end 2025, with the company closing at EUR 10.7 billion net debt excluding IFRS 16 and IFRIC 12, or EUR 10.8 billion including them. For guidance, management reiterated the 2026 plan and said it would likely be on the higher part of the guidance range; on synergies, it said the EUR 130 million 2026 target looks achievable, perhaps a few million above or below that level.

Paolo Gallo framed the first half as evidence that the new strategic plan is already being delivered, emphasizing execution, synergy capture, and operating leverage. He highlighted rapid integration work, including in-sourcing, IT consolidation, organizational streamlining, and early rollout of Agentic AI in operations and back office tasks. He was upbeat on the tender pipeline and said the market evidence supports the company’s earlier view, while also noting Moody’s positive outlook as external validation of the plan.

Pierre La Tour focused on the financial bridge: adjusted EBIT above EUR 700 million, adjusted net profit of EUR 398.6 million, and higher D&A of EUR 67 million mainly from the 2i Rete Gas consolidation and prior investments. He said adjusted net financial expenses were higher because of the consolidated debt and bond-related interest, with cost of debt just below 2.1% versus 1.95% a year earlier, and the tax rate at 28.6% versus 28% in the prior-year period. On cash and capital structure, he pointed to EUR 930 million of operating cash flow, cash conversion above 85%, positive net working capital of EUR 175 million, more than EUR 250 million from mandatory antitrust disposals, a liquidity buffer above EUR 1.2 billion, and 81% fixed-rate debt.

Analysts asked about the government decree on gas tenders, the Greek water and ESCO businesses, Italgas Property, the tender pipeline value, the Ross consultation, the synergy target, WACC/France, and second-half cost and D&A trends. Management said the decree is about updating tender scoring criteria, not accelerating tenders directly, and clarified that the EUR 400 million figure refers to 13 tender items over the next 12 months that could translate into additional RAB if won. On Ross, Paolo Gallo said the consultation appears to favor an intermediate option, that the framework would reward ongoing cost reductions, and that Italgas is well suited to that model; he also said the 2026 synergy target should be met, perhaps with only a small variation around EUR 130 million.