Italgas 1H 2025 slides reveal transformational acquisition impact, 28% EBITDA growth

Italgas SpA (BIT:IG) presented its first-half 2025 results on July 24, showing substantial growth across all financial metrics, primarily driven by the transformational acquisition of 2i Rete Gas that closed on April 1, 2025.

Executive Summary

Italgas reported strong financial performance for the first half of 2025, with adjusted total revenues reaching €1,126.7 million, a 29.2% increase year-over-year. The company’s adjusted EBITDA grew by 27.8% to €857.5 million, while adjusted net profit attributable to the group surged 31.1% to €316.6 million compared to the same period in 2024.

As shown in the following comprehensive financial overview, all key metrics showed double-digit growth:

The results were significantly bolstered by the acquisition of 2i Rete Gas, which contributed to the company’s expansion across all business segments. Even without this acquisition, Italgas demonstrated organic growth, with adjusted EBITDA increasing by 3.2% and adjusted EBIT by 12.4% on a like-for-like basis.

Strategic Initiatives

The most significant development in the first half of 2025 was the completion of the 2i Rete Gas acquisition on April 1, ahead of the initially planned schedule. This transformational deal was followed by a successful €1.02 billion capital increase in June and the merger of 2i Rete Gas into Italgas Reti, which was executed on July 1, 2025.

The integration has substantially expanded Italgas’s operational footprint, as illustrated in the following breakdown:

Paolo Gallo, CEO of Italgas, had previously emphasized the strategic importance of this acquisition during the Q1 earnings call, stating: "We have created the European champion, the largest in size and the most advanced in terms of technology."

The company has made significant progress in integrating 2i Rete Gas, with several key achievements:

• Implementation of a new organizational structure with expanded territorial coverage
• Successful completion of full IT system integration
• Provision of over 60,000 technical training hours
• Formation of 25 cross-functional working groups to facilitate integration
• Launch of a digitization program for the former 2i Rete Gas network

Quarterly Performance Highlights

The revenue growth was driven by contributions across multiple business segments, with the gas distribution business remaining the core revenue generator. The 2i Rete Gas acquisition added €217.5 million to the top line, while other regulated components in Italy and Greece contributed an additional €40.3 million.

The following chart illustrates the revenue contributions by business area:

On the cost side, Italgas continued its efficiency efforts despite the expanded operations. Operating costs increased by 33.9% compared to 1H 2024, but only by 5.7% when excluding the impact of 2i Rete Gas. The company achieved like-for-like efficiencies of €3.6 million, representing a 1.8% improvement.

The company’s EBITDA growth was primarily driven by the distribution business, as shown in this breakdown:

Detailed Financial Analysis

Italgas maintained strong cash flow generation during the period, with operating cash flow increasing by 39.6% to €739.0 million. This robust cash generation covered capital expenditures and most of the dividend cash outflow, despite the significant investment in the 2i Rete Gas acquisition.

The following chart illustrates the company’s cash flow dynamics:

The company’s financial structure remains sound despite the increased debt level resulting from the acquisition. As of June 30, 2025, Italgas reported net financial debt of €10.97 billion (including IFRS 16), with 86% of gross debt at fixed rates. The average cost of gross debt was approximately 1.95% in 1H 2025, slightly higher than the 1.7% reported in Q1.

Capital investments increased by 40.0% to €495.1 million compared to 1H 2024, with a significant portion directed toward development and repurposing (€329.3 million) and digitization initiatives (€106.6 million). Even excluding the impact of 2i Rete Gas, investments grew by 10.7%, reflecting the company’s continued commitment to infrastructure development and technological advancement.

Forward-Looking Statements

Italgas confirmed its full-year 2025 guidance, which includes the contribution of 2i Rete Gas from April 1, 2025 (9 months). The company expects:

Management highlighted that the 2i Rete Gas deal is already EPS accretive in 2025, in line with previous statements. The company also announced that a new strategic plan will be presented on October 29, 2025.

On the regulatory front, Italgas noted the extension of the current regulatory period by two years until the end of 2027, as per ARERA resolution 221/2025/R/Gas, though the consultation document is yet to be published. The company is also progressing with the antitrust disposal process, with binding offers expected by September 5th.

Italgas shares closed at €7.115 on July 24, 2025, down 0.14% for the day, but remain near their 52-week high of €7.375. With a market capitalization of approximately $96.47 million and a dividend yield of 5.11%, the company continues to offer an attractive proposition for income-focused investors, having maintained a track record of raising dividends for nine consecutive years.

Full presentation:

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.