Snam S.p.A.

Snam reported first-half 2026 adjusted EBITDA of EUR 1,572 million, up 5% year over year, or up 9% excluding the EUR 52 million deflator one-off recognized in Q1 2025. Adjusted net income was EUR 733 million, down 2% year over year, or up 3% excluding that prior-year one-off. Investments were approximately EUR 1.6 billion, and net debt was approximately EUR 18.8 billion versus EUR 17.5 billion at the end of 2025. On the cash flow line, cash flow from operations was around EUR 1,832 million, driven by EUR 1,232 million of funds from operations and about EUR 600 million of positive working capital. For 2026, management confirmed adjusted EBITDA of around EUR 3.1 billion, adjusted net income above EUR 1,450 million, net debt guidance improved to EUR 18.9 billion from EUR 19 billion, working capital expected to remain broadly stable at around EUR 600 million, and financial expenses confirmed at EUR 335 million.

Agostino Scornajenchi framed the call around energy security, arguing that natural gas remains the backbone of Italy’s energy system and will stay essential as renewables, electrification, and data centers increase the need for flexible generation. He emphasized that LNG has become a structural pillar of supply, storage is strategically important, and Italy is better positioned than many European peers heading into winter. His tone was confident and policy-focused, repeatedly stressing diversification, resilience, and the role of regulated infrastructure in the ‘energy integration era.’

Luca Passa said first-half adjusted EBITDA of EUR 1,572 million was driven by higher regulated revenues, perimeter effects from Società Gasdotti Adriatica, Ravenna FSRU and OLT consolidation, plus biomethane connections and market solutions growth. He noted adjusted net income of EUR 733 million was affected by higher D&A, higher net financial expenses from higher average net debt, and increased taxes, while average cost of debt stayed broadly stable at 2.6%. He also highlighted funding progress: sustainable finance reached 90% of committed financing, the company completed a EUR 750 million green bond and EUR 750 million sustainability-linked bond, secured about EUR 1.2 billion of bilateral bank facilities, and extended its revolving credit facility to EUR 25.1 billion. On capital allocation, he said net debt guidance improved to EUR 18.9 billion and that the fixed-to-floating mix was shifted to 65/35%, with the reduction expected to lower financial expenses by EUR 10 million to EUR 12 million for the full year.

Analysts focused on the seventh regulatory period, TAP expansion, the CCS framework, stranded-asset risk, storage remuneration, LNG remuneration, and whether rising rates or inflation could affect the plan. Management said the new regulatory consultation has both positives and concerns: simplification of the ROSS framework could reduce volatility, but there are debates on gearing and the remuneration of work in progress, with a final resolution expected in Q1 2027. On TAP, Snam said a binding market test is planned for Q1 2027 and could support up to 7.4 BCM of additional capacity by 2031-2032 if the market requests it. On CCS, management said the government assigned ARERA to define the framework and that it should be based on principles similar to natural gas; on stranded assets, they said no policy mechanism exists because no Snam asset has been declared stranded. They also argued LNG deserves more stable remuneration because it is now a mandatory part of the system, not just a commercial option.