Terna 1H 2025 presentation slides: Record capex drives 8% revenue growth

Introduction & Market Context

Terna Rete Elettrica Nazionale SpA (BIT:TRN) presented its first-half 2025 consolidated results on July 29, showcasing strong financial performance across key metrics. The Italian grid operator continues to play a pivotal role in the country’s energy transition, with renewable energy sources covering 42% of national demand during the period. Terna’s stock closed at €8.424 on the presentation day, trading between its 52-week range of €7.358 to €9.10.

Building on its solid Q1 2025 performance, when the company reported a 5.1% year-over-year revenue increase, Terna demonstrated accelerated growth in the second quarter while maintaining its strategic focus on grid expansion and renewable energy integration.

Quarterly Performance Highlights

Terna reported robust financial results for the first half of 2025, with consistent growth across all key metrics compared to the same period in 2024. Total (EPA:TTEF) revenues reached €1,894 million, representing an 8% increase year-over-year, while EBITDA grew by 8.2% to €1,360 million. The company’s net income rose to €588 million, up 7.7% from the previous year.

As shown in the following key performance indicators:

The most notable achievement was Terna’s record level of capital expenditure, which surged by 27% year-over-year to €1,319 million. This significant increase in investment underscores the company’s commitment to strengthening Italy’s energy infrastructure and supporting the transition to renewable energy sources.

Detailed Financial Analysis

Terna’s revenue growth was primarily driven by its regulated activities, which increased by 8.3% to €1,594 million and accounted for approximately 84% of total revenues. Non-regulated and international activities contributed €300 million, up 6.5% compared to 1H 2024.

The breakdown of revenue sources illustrates the company’s business model:

Operating expenses (Opex) increased by 7.5% to €534 million, slightly below the rate of revenue growth, contributing to the improvement in EBITDA margin. The company maintained strong profitability with EBITDA reaching €1,360 million, representing a margin of approximately 72%.

The progression from EBITDA to net income shows the company’s effective management of depreciation, financial expenses, and taxes:

Terna’s capital expenditure reached a record level of €1,319 million, with the majority allocated to regulated activities. The investment breakdown reveals the company’s strategic priorities:

The significant increase in capital expenditure has led to a corresponding rise in net debt, which increased to €11,970 million from €11,160 million at the end of 2024. This development is illustrated in the cash flow and net debt evolution:

Despite the increased debt level, Terna maintains a solid financial structure with approximately 88% of its debt at fixed rates and an average maturity of around 6 years, providing stability in the current interest rate environment.

Strategic Initiatives

Terna made significant progress on several strategic initiatives during the first half of 2025. The company completed the laying of the first submarine cable of the eastern section of the Tyrrhenian Link, a crucial infrastructure project connecting the Italian mainland with Sicily and Sardinia. Additionally, Terna signed a Memorandum of Understanding for the development of the Grita 2 interconnection.

The company’s focus on innovation and digitalization was evident in its agreement with Microsoft (NASDAQ:MSFT) on digitalization, innovation, and security. Terna also launched the Adriatic innovation zone and established a strategic partnership with Polytechnic Universities to foster research and development.

On the financial front, Terna successfully secured €1.5 billion for the Adriatic Link project and launched its first European Green Bond for €750 million, demonstrating strong market confidence in its business model and strategy. Moody’s improved the company’s outlook to positive while confirming its Baa2 rating, further validating Terna’s financial stability.

The company’s commitment to renewable energy integration is reflected in the energy demand statistics, with 42% of national demand covered by renewable sources during the period. In May 2025, this figure reached 56%, highlighting the progress in Italy’s energy transition.

Forward-Looking Statements

Terna confirmed its 2025 guidance and expressed confidence in meeting its plan targets despite acknowledging the challenging market scenario. The company’s closing remarks emphasized its focus on executing strategic initiatives while maintaining financial discipline.

The 2025 total grid fee update shows an increase in both transmission and dispatching revenues compared to 2024, providing visibility on future regulated income:

Looking ahead, Terna is well-positioned to capitalize on the growing demand for renewable energy infrastructure and grid modernization. The company’s record capital expenditure demonstrates its commitment to supporting Italy’s energy transition while delivering sustainable financial growth for shareholders.

Building on its Q1 2025 performance, when the company reported that data center connection requests totaled 42 GW, Terna continues to prepare for the increasing integration of new energy sources and evolving demand patterns, reinforcing its central role in Italy’s energy future.

Full presentation:

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