Snam S.p.A.

For first-half 2026, Snam reported adjusted EBITDA of EUR 1,572 million, up 5% year over year, or up 9% after excluding the EUR 52 million one-off related to the 2024 deflator update recovery booked in Q1 2025. Adjusted net income was EUR 733 million, down 2% year over year, but up 3% net of that one-off and fiscal effect. Investments were approximately EUR 1.6 billion, and net debt was EUR 18.8 billion versus EUR 17.5 billion at the end of 2025; the average cost of debt remained stable at 2.6%. For full-year 2026, management confirmed adjusted EBITDA of around EUR 3.1 billion, adjusted net income above EUR 1,450 million, and upgraded net debt guidance to EUR 18.9 billion from EUR 19.0 billion previously. They also reaffirmed financial expenses guidance of EUR 335 million for the full year.

The CEO framed the quarter around a broader thesis that gas remains central to Italy’s energy system and that the industry is moving into an “energy integration era,” where molecules, electricity, storage, and infrastructure all need to work together. He stressed resilience, diversification, and security of supply, pointing to LNG’s role in replacing Russian pipeline dependence and to storage as a key buffer ahead of winter. His tone was confident and strategic, with repeated emphasis on Snam’s role in national energy security and on the strength of the regulated business model.

The CFO broke down EBITDA growth as driven mainly by higher regulated revenues, perimeter effects from Società Gasdotti Adriatica, Ravenna FSRU, and OLT consolidation, plus biomethane connections and market solutions growth. He said adjusted EBITDA reached EUR 1,572 million, adjusted net income was EUR 733 million, operating cash flow was around EUR 1,832 million, and net investment was EUR 1,154 million. He also highlighted net debt of about EUR 18.8 billion, a stable average cost of debt of 2.6%, a 65/35 fixed-to-floating mix, and stronger liquidity actions including a EUR 750 million dual bond, about EUR 1.2 billion of bilateral facilities, a EUR 124 million EIB tranche, and an enlarged revolving credit facility to EUR 25.1 billion.

Analysts asked about the seventh regulatory period consultation, TAP expansion potential, European gas security into winter, the impact of the ROSS framework, CCS regulation, stranded asset risk, LNG/storage remuneration, asset rotation, and whether higher rates or inflation change CapEx plans. Management said ARERA’s draft includes both positive elements and areas of concern, especially around leverage methodology and remuneration of work in progress, and expects a final resolution in Q1 2027. On TAP, they said a binding market test starts in Q1 2027 and could support up to 7.4 BCM of additional capacity by 2031-2032; on LNG they argued the current 64% remuneration cap should be removed in favor of 100% long-term remuneration, and on stranded assets they said no policy exists because no asset has ever been declared stranded by the regulator.