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Introduction & Market Context
Italian electricity grid operator Terna SpA (BIT:TRN) presented its first quarter 2025 results on May 15, showing solid growth across all key financial metrics while accelerating investments in grid infrastructure to support Italy’s energy transition. The company also highlighted its improved credit rating and continued focus on financial stability despite significant capital expenditures.
Terna reported that 33% of Italy’s national electricity demand was covered by renewable energy sources during the quarter, underscoring the company’s critical role in the country’s ongoing shift toward cleaner energy. The national energy demand stood at 77 TWh, slightly down by 0.7% compared to the same period last year.
Quarterly Performance Highlights
Terna delivered solid financial results in Q1 2025, with revenues increasing by 5% year-over-year to €902 million, while EBITDA grew by 4% to €652 million. The company’s net income rose by 3% to €275 million compared to Q1 2024.
As shown in the following comprehensive overview of key financial metrics:
The company’s performance was driven by growth in both regulated and non-regulated business segments. Regulated activities, which form the core of Terna’s business, saw a 3.4% increase in revenues to €755 million, while the non-regulated and international activities segment demonstrated stronger growth of 14.5%, reaching €147 million in Q1 2025.
The revenue breakdown by business segment shows the contribution of each area to the overall growth:
Detailed Financial Analysis
Terna’s EBITDA growth was primarily driven by its regulated business, which contributed €627 million (up from €610 million in Q1 2024), while non-regulated and international activities added €25 million, showing a significant improvement from €18 million in the same period last year.
The following chart illustrates the EBITDA breakdown by business segment:
The company’s path from EBITDA to net income shows the impact of depreciation and amortization, financial expenses, and taxes:
A notable highlight of the quarter was Terna’s accelerated capital expenditure, which increased by 16% year-over-year to €562 million. The majority of these investments (56%) were directed toward development projects, with 30% allocated to defense and 14% to asset renewal and efficiency initiatives.
The capex breakdown demonstrates Terna’s focus on grid development:
Despite the significant investments, Terna maintained a solid financial position, with net debt slightly decreasing to €11,127 million as of March 31, 2025, compared to €11,160 million at the end of 2024.
The following chart shows the evolution of Terna’s net debt during the quarter:
Strategic Initiatives
Terna highlighted several key strategic achievements during the quarter, including the presentation of its updated 2024-2028 Industrial Plan and the 2025 National Development Plan, which foresees over €23 billion of investment in the national transmission grid over the next decade.
The company also secured authorizations for 12 development projects for the national transmission grid and strengthened its financial position through the issuance of a €750 million green bond and the refinancing of an ESG-linked Revolving Credit Facility worth €1.8 billion.
These strategic initiatives are summarized in the following overview:
Terna’s financial structure remains robust, with approximately 88% of its gross debt at fixed interest rates and an average maturity of around 6 years. The company’s debt is primarily composed of bonds (59%), followed by bank loans (28%) and European Investment Bank funding (13%).
The debt structure provides Terna with long-term visibility and stability:
Forward-Looking Statements
Looking ahead, Terna reaffirmed its commitment to driving the energy transition in Italy while reinforcing grid resilience. The company indicated it is well on track with the execution of its investment plan and emphasized its focus on maintaining financial stability and a low-risk profile.
As outlined in the closing remarks:
The company’s credit profile received a boost during the quarter, with S&P Global Ratings upgrading Terna’s rating to A- from BBB+, while Moody’s confirmed its Baa2 rating. Both ratings carry a stable outlook, reflecting confidence in Terna’s business model and financial management.
Terna’s Q1 2025 results demonstrate the company’s ability to deliver consistent financial growth while accelerating investments in Italy’s energy infrastructure, positioning it well to support the country’s ongoing transition toward renewable energy sources and maintain its leadership in the European transmission system operator landscape.
Full presentation:
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