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Introduction & Market Context
Italian energy infrastructure company Snam SpA (BIT:SRG) presented its first-half 2025 results on July 30, showing solid financial growth amid an evolving energy landscape in Italy. The company continues to play a pivotal role in Italy’s energy system, where gas represents 35% of primary energy consumption, while simultaneously advancing its energy transition strategy.
The presentation highlighted how Italy’s gas supply dynamics have undergone significant transformation, with liquefied natural gas (LNG) now accounting for over 30% of imports, a 32% increase compared to the first half of 2024. This shift reflects Snam’s strategic adaptation to changing energy flows across Europe.
As shown in the following chart of Italy’s energy system, gas remains a crucial component of the country’s energy mix, contributing 35% of primary energy consumption:
Quarterly Performance Highlights
Snam reported strong financial results for the first half of 2025, with adjusted EBITDA reaching €1,492 million, a 5.3% increase year-over-year. Adjusted net income rose to €750 million, up 8.5% compared to the same period in 2024. These improvements came despite a slight 3.1% decrease in investments to €1,122 million.
The company’s financial performance was supported by a 6% increase in Italian gas demand, with the thermoelectric sector showing particularly strong growth of 12%. This uptick in demand underscores gas’s continuing importance in Italy’s energy mix, especially for electricity generation during periods of low renewable energy production.
The following chart details the gas demand growth across different sectors:
Snam’s key financial metrics demonstrate consistent improvement across major indicators, including a credit rating upgrade to "A-" from S&P:
Strategic Initiatives
Snam continues to advance its strategic initiatives across three main pillars: gas infrastructure, energy transition, and sustainability. The company reported that the Adriatic Line is now 35% complete, while the FSRU Ravenna floating storage and regasification unit started operations in May 2025. These developments strengthen Italy’s gas import capabilities and supply security.
In the energy transition space, Snam highlighted the strong technical performance of its Ravenna carbon capture and storage (CCS) project, 72 MW of biomethane in operation, and a €24 million co-financing agreement for hydrogen projects. The company has also aligned 32% of its capital expenditure with the EU Taxonomy and 61% with UN Sustainable Development Goals.
The following image illustrates Snam’s key strategic achievements as of June 2025:
The company’s investment strategy clearly prioritizes energy transition, which accounts for 46% of total investments, followed by digitalization and technology at 19%:
Detailed Financial Analysis
Snam’s adjusted EBITDA growth of 5.3% was driven by several positive factors, including regulatory changes, increased regulated revenues, and contributions from Stogit Adriatica and the Ravenna FSRU. These gains were partially offset by higher operating costs in gas infrastructure.
The following waterfall chart breaks down the factors contributing to EBITDA growth:
A significant driver of Snam’s improved financial performance was the increased contribution from associates, which grew from €157 million in 1H 2024 to €204 million in 1H 2025, representing a 30% increase. Major contributors included TAP, SeaCorridor, and Terega.
As illustrated in this breakdown of associates’ contributions:
The company’s net income growth of 8.5% resulted from higher EBITDA and increased contributions from associates, partially offset by higher depreciation and amortization expenses and lower financial income:
Snam’s net debt increased from €16,238 million at the end of 2024 to €17,580 million by June 30, 2025. Despite this increase, the company maintained a stable average cost of debt at approximately 2.5% and continued to optimize its financial structure with 86% of its financing classified as sustainable:
Forward-Looking Statements
In its closing remarks, Snam expressed confidence in meeting or exceeding its full-year 2025 guidance, citing its sound financial performance and progress in strategy execution. The company emphasized the key role of gas in the current energy scenario and its focus on value creation and financial flexibility.
Snam also highlighted its sustainability commitments, with 2025 targets for various environmental and social metrics. The company is on track to reduce its Scope 1 and 2 emissions by 20% compared to 2022 levels and continues to increase the percentage of its investments aligned with sustainability frameworks.
The company’s comprehensive sustainability scorecard demonstrates its commitment to measurable environmental and social goals:
Overall, Snam’s first-half 2025 results reflect a company successfully balancing its traditional gas infrastructure business with an accelerating transition toward lower-carbon energy solutions, while delivering solid financial performance for shareholders. The company’s strategic positioning in both the gas market and emerging energy transition sectors appears to be yielding positive results in the evolving European energy landscape.
Full presentation:
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