Earnings call transcript: Terna’s Q2 2025 results show revenue growth

Terna Rete Elettrica Nazionale SpA (Terna) reported strong financial results for the second quarter of 2025, with group revenues rising by 8% to €1,894 million. The company also saw its EBITDA increase by 8.2% to €1,360 million, and net income grow by 8% to €588 million. Despite these positive results, Terna’s stock remained unchanged, closing at €8.424, reflecting stable investor sentiment in the immediate aftermath of the earnings announcement. According to InvestingPro data, the company maintains impressive gross profit margins of 22.62% and has consistently paid dividends for 22 consecutive years, demonstrating strong financial stability.

Key Takeaways

• Group revenues increased by 8% to €1,894 million.
• EBITDA rose by 8.2% to €1,360 million.
• Net income grew by 8% to €588 million.
• Terna launched its first European green bond, valued at €750 million.
• The company confirmed its full-year 2025 guidance.

Company Performance

Terna’s performance in Q2 2025 was robust, with significant growth across key financial metrics. The company’s strategic initiatives, including the launch of a European green bond and partnerships for innovation, have positioned it as a leader in the energy transition. Compared to previous quarters, Terna maintained a steady growth trajectory, leveraging its investments in grid modernization and renewable energy.

Financial Highlights

• Revenue: €1,894 million, up 8% year-over-year.
• EBITDA: €1,360 million, up 8.2% year-over-year.
• Net Income: €588 million, up 8% year-over-year.
• Total CapEx: €1,319 million, a 27% increase from the previous year.

Outlook & Guidance

Terna confirmed its full-year 2025 guidance, anticipating continued momentum in renewable installations and increased electricity demand from data centers. The company expects high-voltage connection requests for data centers to reach 50 GW, underscoring the growing demand for infrastructure development.

Executive Commentary

Giuseppe Niedi Foggia, CEO of Terna, emphasized the company’s commitment to its strategic goals, stating, "TERNA is committed to the execution of its planned targets." He highlighted the focus on energy transition and digitalization, noting, "These investments focus on both the energy transition and digitalization."

Risks and Challenges

• Supply Chain Issues: Potential disruptions could impact project timelines and costs.
• Regulatory Changes: Updates to policies or tariffs may affect profitability.
• Market Saturation: Increased competition in renewable energy could pressure margins.
• Macroeconomic Pressures: Economic slowdowns or inflation could affect demand.

Terna’s Q2 2025 earnings call highlighted the company’s strong financial performance and strategic initiatives, reinforcing its role as a key enabler of the energy transition. With a focus on innovation and infrastructure development, Terna appears well-positioned to navigate future challenges and capitalize on emerging opportunities.

Full transcript - Terna Rete Elettrica Nazionale SpA (TRN) Q2 2025:

Conference Moderator: Good afternoon, ladies and gentlemen, and welcome to Teradata’s Consolidated Results First Half twenty twenty five Conference Call. This time, all participants are in a listen only mode. Please be advised that today’s conference is being recorded. I’d like to hand the conference over to your host speaker today, Mr. Stefano Gamberini, Investor Relations to begin.

Please go ahead, sir.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Thanks a lot. Good afternoon, everyone, and welcome to TERNA’s first half results presentation. The call will be hosted by our CEO and general manager, Giuseppe Niedi Foggia and our CFO, Francesco Beccario. Following the presentation, we will have the Q and A session. So we kindly ask you to send any question you might have to our e mail investor.

Relationsperna. Ip. Please, Jussi.

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Thank you, Stefano and Engel. Good afternoon, everyone. Before looking at the figures, I’d like to take a moment to highlight some of our most recent achievements. In March, we presented the new ten year national development plan. This plan outlines the main grid development projects requiring investments of over €23,000,000,000 by 02/1934.

Shortly after, we published the updated twenty twenty four-twenty twenty eight industrial plan, which sets out investments totaling €17,700,000,000 These investments are aimed at improving the efficiency, resilience, sustainability and security of our grid, while also supporting the integration of renewable energy sources. In doing so, Terna continues to reinforce its role as a key enabler of the energy transition, helping the system move towards decarbonization and reducing reliance on foreign energy. The 7% increase in CapEx compared to the previous plan is mainly driven by the security plan, which focuses on enhancing grid resilience and renewing assets. It also includes new projects that promote digitalization, the use of advanced technologies and the adoption of artificial intelligence. Turning to grid development, Inmeit, my Indito, the Greek TSO signed a memorandum of understanding as part of the Italy Greece Intergovernmental Summit.

This MOU lays the foundation for a new HBDC interconnection between the two countries. Countries. The new link will represent a strategic infrastructure for both Italy and Greece, supporting their decarbonization goals in strengthening their position as energy hubs in the Mediterranean. On project execution. Let me remind you that on May 8, we completed the laying of the first submarine cable over the Iranian links eastern section, one of the Italy’s most important power infrastructure projects, which will connect Campania and Sicily.

From a regulatory perspective, in May, Avera published Consultation Paper 210.2025. The paper proposes adjustments to how certain aspects of the Roth Basel regulation are implemented, particularly regarding tariff recognition of CapEx and OpEx. It also introduces the first guidelines of the ROS Integrale mechanism, including the requirements for companies to present business plan and outlining three new incentive schemes, two of which are expected to apply from 2026, while the third will be introduced as a later stage. Now let me briefly touch on innovation and digitalization where we launched several initiatives in June. On June 19, TERNA signed a memorandum of understanding with the Microsoft to develop strategic projects to supporting our digital transformation.

This partnership will allow us to leverage artificial intelligence, next generation data platforms, platforms, and hybrid digital infrastructures to advance our mission. Then on June 23, we launched the Deterna Adriatic Innovation Zone in the market region, Our new innovation hub created to help transform the Adiatic area into a center of technological excellence and to promote innovation in support of both the energy transition and local business development. In addition, TERNA has partnered with the Polytechnic Universities of Paris, Milan and Turin to launch a level two master’s degree in innovation in electricity systems for energy. This program is part of the Polytech Lab, the new high skilled polytechnic network. Launched in April, the collaboration is designed to promote research, innovation, and advanced training, generating a positive social impact for the electricity sector and for the country as a whole.

Finally, on the sustainability front, I would like to mention that during the period we published our first ever consolidated sustainability report fully aligned with the new corporate sustainability reporting directive framework. From a financial standpoint, let me remind you that SMT upgraded the long term rating of Atherna to a minus in April following the upgrade of the Italian Republic from triple b to triple b plus. In June, Moody’s performed the Fairness long term rating at b double a two, a notch above the rating of the Italian Republic. Furthermore, Moody’s upgraded the Termas outlook from stable to positive, reflecting the company’s solid financial profile despite the increased CapEx plan. On the July 10, the European Investment Bank in Cesar Sao Paulo, Satre and Serna signed agreements totaling EUR 1,500,000,000.0 to finance the construction of the Adriatic Link, the submarine power line that will connect the Marseille and the Brussels regions.

The project is strategically important for Italy’s power grid, promoting the integration of renewable energy sources and increasing Italy’s energy autonomy and security. On the July 15, Terna successfully launched its first European green bond under the new EUR 4,000,000,000 EMTN program listed on Bolsa Italiana’s electronic bond market and approved by Constable. The issuance has a nominal amount of EUR $750,000,000 and received a very favorable market response with demand out flipping the supply by almost five times. Finally, as far as the remuneration of our shareholders is concerned, on June 23, we paid the 2024 final dividend of EUR 27.7 per share, bringing the total dividend for the year to EUR 39.62 per share, including the interim dividend paid last November. After this brief introduction, let me give you an overview of the Italian electricity market.

Turning to the next slide. As you can see from the chart, in the first six months of 2025, national demand was about 153 terawatt hours, essentially in line with the level recorded in the same period of last year when national demand was about 152 terawatt hours. Over the period, renewable sources covered about 42% of national demand, slightly lower than last year, mainly due to a drop in hydroelectric production following an exceptionally strong performance in the previous year. It is worth highlighting that in May, renewable sources covered 56% of the electricity demand, the highest ever value on a monthly basis. Moving to national net total production, this stood at 131 terawatt hours, up by 4% compared to the same period of 2024.

In this first half, renewable sources accounted for about 49% of the national net total production, down from 53% of last year. However, let me highlight the considerable increase in solar production, which grew to around 22.1 terawatt hours, up 23% versus the first half of last year. Now let’s move to the main figures of the period. In the 2025, despite the complex and challenging macroeconomic environment, we delivered positive results across all three lines of the P and L and the solid CapEx growth. Indeed, group revenues and EBITDA both grew by 8%, increasing by approximately EUR 140,000,000 and EUR 103,000,000 compared to the 2024.

We also reported a group net income of €588,000,000 with an increase of 8% versus the same period of last year. Group CapEx reached $1,390,000,000 euros marking an increase of 27% versus the first half of last year, setting a new record in Terna’s history. This confirms once again our solid CapEx acceleration to serve the system needs. To support this CapEx acceleration at the June 2025, net debt stood at EUR 12,000,000,000, slightly higher compared to the value recorded after 2024 year end of about €11,200,000,000 Now let me leave the floor to our CFO to have a closer look at the results. Please, Francesco?

Francesco Beccario, CFO, Terna S.p.A.: Thank you, Josie. Let’s start, as usual, with revenues analysis. In the first six months of 2025, the total revenues increased by 8%, reaching EUR 1,894,000,000.000, up by EUR 140,000,000 versus last year. The growth was mainly attributable to regulated activities, which contributed for €122,000,000 while non regulated activities increased by €18,000,000 I will take a closer look at the evolution of revenues moving to the next slide. Regulated revenues reached $1,594,000,000 euros with an increase of more than 8% versus previous year.

The growth was mainly driven by the rapid growth deriving from the recognition in tariff of 2024 capital expenditure and the assessment of the tariff decoupling related to the update and revaluation of capital cost parameter. The early recognition entitled depreciation related to 2024 capital expenditures one year in advance compared to the previous regulatory framework, as well as the recognition of depreciation related to 2023 capital expenditures in line with the second two year standard delay. And in the end, the fast money component set on the conventional capitalization rate defined under the ROS application. These factors more than offset the WACC reduction from 5.8% to 5.5% in 2025 and the lower out of base incentives contribution versus last year. Non regulated revenues reached €300000000.6.5 percent higher than last year.

The improvement mainly reflects the higher contribution from the equipment segment, which includes Tamini and BruteCables, partially offset by the decrease in revenues from the Energy Services segment. The results attributable to the South American subsidiaries have been classified among assets for as in 2024. Now let’s go through operating cost analysis. As you can see in the chart, total operating costs stood at €534,000,000 7.5% higher than last year. The regulated activities cost increase is mainly attributable to the rise in the headcount and the higher average cost of labor, partially offset by higher capitalization.

The non regulated activities were primarily impacted by higher service costs related to development of activities mainly in the equipment segment. Regarding EBITDA, we move to the next slide. Thanks to the acceleration in revenues. First half twenty twenty five group EBITDA reached €1,360,000,000 8.2% higher than the same period of last year. The improvement was mainly attributable to regulated activities, which contributed for about EUR89 million more versus the first six months of last year, showing an EBITDA of EUR1302 million in the 2025.

EBITDA from non regulated activities increased by 29% to €58,000,000 mainly thanks to the higher contribution from the equipment segment with improving results from both the Tamini and Bruckebox groups. Let’s now have a look to the lower part of the P and L, turning to the next slide. D and A amounted to €447,000,000 The increase versus last year was mainly related to the entry into service of new infrastructure. As a consequence, EBIT reached nine thirteen million euros 9.2% higher versus the 2024. The net financial expenses amounted to €76,000,000 The slight year on year increase of €13,000,000 is mainly due to the signing of new financings, only partially offset by higher capitalized financial charges.

Taxes stood at €249,000,000 €22,000,000 higher versus last year, essentially due to improved results. Our tax rate was 29.8% compared to 29.4% in the 2024. As a result, group net income reached EUR588 million, 8% higher versus the same period of last year. Moving to CapEx analysis. In the first six months of twenty twenty five, total CapEx reached $1,319,000,000 euros up by 27% year on year.

This marks a new all time high for the first half of the year, exceeding €1,300,000,000 and confirms the strong acceleration in investments. We invested about $1,243,000,000 euros in regulated activities. Among the main projects of the period, it is worth mentioning the Tirana Link, the SACOI-three, the modernization of the high voltage grid in the locations due towards the Winter Olympics in 2026, the Colunga Calensano Connections and the Adriatic Link. Last but not least, the investments of the defense plan, which aims to enhance our voltage control capacity and support grid stability, including synchronous compensations, shunt reactors and damping resistor systems. Among CapEx categories, development CapEx represented 54% of total regulated CapEx.

Defense CapEx stood at 15%, while asset renewal and efficiency was 31%. Loan regulated and other CapEx stood at €76,000,000 This includes capitalized financial charge and other investments. Turning now to next slide. Cash flow generation for the period amounted to around €1,100,000,000 and was the result of around €1,000,000,000 of operating cash flow and €100,000,000 of working capital and other items. Net debt at the June 2025 was about €12,000,000,000 around €800,000,000 higher than twenty twenty four year end level, primarily due to the capital acceleration and the dividend payment.

Let’s now make a deeper analysis on our of our debt profile, moving to Page 16. Our cautious and proactive debt management approach is focused on maximizing efficiency and maintaining a solid financial structure. As of the end of this first six months of 2025, we registered a fixed floating ratio of gross debt of around 88% with an average duration of approximately six years. In alignment with Terna’s strategy, we changed to combine investment and sustainability to drive growth and value creation. On July 15, TERNA successfully launched its first fixed rate single tranche European green bond issue with a total nominal amount of EUR $750,000,000.

The European green bonds, which received a very favorable market response with demand of stripping supply by almost 5x the offered amount, has a duration of six year and will pay an annual coupon of 3%. This issue was launched as part of TERNA’s new EUR €4,000,000,000 medium term loan program listed on Borsitallana’s electronic bond market. As said at the beginning of the presentation, Ingraif, the European Investment Bank, Pernem, Teza Sao Paulo and Sanchez have signed an agreement totaling EUR 1,500,000,000.0 to support the development and construction of the so called Adriatic Links, the submarine cable power cable linking the Italian regions of Marquette and Abruzzo. The operation is financially structured into three tranches, all of which are covered by such as Archimedes guarantee for an amount exceeding €1,000,000,000 In details, we have a EUR $750,000,000 loan granted by EIB to TEFNA with a duration of twenty two years, another EUR 500,000,000 credit line provided by Intesa Sanpaio of TEFNA with a duration of seven years and an additional €250,000,000 loan from Intesa Sanpaolo with funding made available by the EIB and the duration of seven years. Finally, with regards to credit ratings, let me remind you that in April, Standard and Poor’s upgraded Terma’s long term rating from BBB plus to Imams, following the upgrade of the Souvenir rating to BBB plus Moreover, in June, Moody’s improved the outlook to positive from stable after the review of the assessment of the entire republic.

The decision of the two agencies reflects TERMA’s solid financial structure despite the acceleration in investments provided by the industrial plan. Thank you for your attention. I leave now the floor to Jouzi for closing remarks.

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Thank you, Francesco. Let me conclude this presentation with some closing remarks. First, I’d like to highlight that we have delivered a solid set of results despite the increasingly complex and challenging macroeconomic and geopolitical environment. This reflects the robustness of our business model, our ability to adapt and the continued commitment of our people that allow us to keep our promises and even to exceed them. In this regard, TERNA is committed to the execution of its planned targets.

This will allow the integration of renewable sources, the development of the network and the strengthening of interconnections with the foreign countries. These efforts will announce the security and resilience of the electricity system, enabling the achievement of national and European targets and ensuring system stability. And before moving to the Q and A session, let me underline that with the strong set of results just presented for the first half, we can fully confirm our twenty twenty five full year guidance. Thank you for your attention so far. And we are now ready for the Q and A session.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Very well. We can now begin the Q and A section. Let’s start with first questions for you, Dussi. About Elof’s Integrale framework, could you give more color about the consultation document published at the May? And which are your expectations for potential new incentive scheme proposed?

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Well, about the Ross Integrale framework, let me say that, the document makes it clear that Areta is really focused on making sure we deliver strategic high value energy infrastructure. It’s not just about having a forward looking business plan that outlines spending and targets. This is it’s also about giving operators the chance to earn additional reward if they can meet key system needs and cost saving efficiently. And now, while this consultation document does give us an early look at the incentive schemes under the ROTH Integrale framework, I want to be clear. The detailed design of those reward mechanism probably won’t be decided as part of this round.

That will likely come later once Herrera has reviewed the specific proposal submitted by companies.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Okay. Thank you. What are your latest expectations with respect to the updating WACC for 2026?

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Mhmm. Well, let me be straight. As of today, it is too early to assess, if the threshold for the potential lockup date at the end of this year will be met since the observation period that we finish at the September 2025. And according to the latest mark to market calculation, the change in WACC value is still below the threshold of 30 basis points. However, since the values remain close to the threshold, we should closely monitor the parameters over the final two months as they could trigger a WACC update.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Okay. Now can you give us an update on the installation of renewables as of June year? Do you expect this trend to continue over the coming years?

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Well, we have really seen the pace of renewable installations pick up in recent years. Just to give you some context, until 2021, the average was about one gigawatt a year. Then in 2022, that rose to around three gigawatts. And the trend continued. They continued in 2023 with the six gigawatts and the 2024.

So another record with the 7.5 gigawatts installed. And 2025 is off to a solid start as well. There’s been a slight slowdown compared to the first half of last year, but we have still seen about 3.1 gigawatts added so far, not far off from the 3.7 gigawatts installed in the same period of 2024. And this steady growth in installations is an encouraging sign for meeting the targets set out in the updated National Climate and Energy Plan. The one that Italy submitted to the European Commission in June 2024.

And let me conclude with the first ferric auction scheduled in for twenty twenty to 2025. Further momentum is expected from the upcoming incentive scheme.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Great. Let’s move to another topic. Due to the penetration of renewables, do you think that the Spanish blackout might be an event that will occur more frequently in the future?

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Well, let me start saying that the European electricity system is complex. It’s complex, and Italy is a a key part of it. So while we can’t eliminate the risk and and we can see that the Italian grid is now much more resilient. Thanks to the investments that has made the recent years to improve grid security. And now let’s have a look at our investments on this.

It’s important to say that our 2024 secondurity plan already included over €1,300,000,000 investments for 2024, 2027. And this was increased to €2,000,000,000 for twenty twenty five, twenty twenty eight in our industrial plan update last March. And it was confirmed again in the 2025 secondurity plan update that we sent to the Ministry of the Environment and Energy Security in May. These investments focus on both the energy transition and digitalization. For example, that is just an example through the use of synchronous compensators connected to the grid.

And beyond the numbers, we have also deployed a full range of technologies to strengthen the national grid safety. And as renewables grow and traditional thermal capacity declines, system stability can be affected. And and that’s why we are planning even more investments in grid security. This is our twin transition. This is what I mean as a as a twin transition.

And now let me conclude with the with the good good news, Stefano. Italy already has a strong dispatch in the framework with the clear rules for now renewables must support system stability and balancing.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Thank you, Dussi. Now another question. How’s your investment plan progressing? Are there any slippages in the execution of major projects?

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Yes. A key part of our plan, the execution, as I said many times. And the execution of our investment plan is going forward as planned. So let me reiterate that we are on the right path and the CapEx plan is solid and safe. All our main HVDC projects have received the necessary authorization and over 90% of the projects in the plan have completed the approval process.

On the procurement side, we are fully aware of the potential supply chain shortages and bottlenecks affecting the industry. And to manage this risk, we have taken several steps to ensure continuity. Thanks in part to the support of Broad Cable and Terminator Formers, we have already secured nearly all procurement needs through the 2025. And to conclude, looking at the full business plan period, about 85% of the twenty twenty four, twenty twenty eight CapEx is already covered by existing procurement contracts, up from 80% in March.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Very well. The following question is for you Francesco. Could you quantify the one off revenues related to inflation upside?

Francesco Beccario, CFO, Terna S.p.A.: Sure. For each variation of plus or minus 1% and expected inflation using the RAB revaluation, the impact of regulated revenues is about EUR 20,000,000. Considering the updated value of 2023 and 2024 inflation approved by ARENH in its last resolution, there is a total increase of about 2%, which leads to an increase of regulated revenues of about EUR 40,000,000 on tariff 2025 and the further adjustment of around EUR 16,000,000 on 2024.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Thank you. We received many questions about OBI. What are the out of base incentives accounted in the first half? Is your expectation for the full year confirmed also related to the evolution of dispatching costs? And what are your expectation about further OBI that could be introduced through Ross Integrale scheme?

Francesco Beccario, CFO, Terna S.p.A.: Well, in the 2025, there is no contribution coming from the out of bed incentives related to dispatching market efficiency incentives. It will be recognized in the second half of the year when there will be a higher degree of certainty about the possibility of reaching the targets, in line with the accounting principles. In the first half of twenty twenty five, we have instead registered EUR 16,000,000 related to inter journal and efficiency incentives. With reference to the full year 2025, our expectations reflect the update in the performance estimate for 2025, which will allow us to reach and possibly exceed the guidance already provided after the 2025 of more than 50,000,000 of OBI. Finally, let me also remind that our updated industrial plan assumes that OBI’s contribution of about EUR 900,000,000, considering also €361,000,000 accounted in 2024, mostly referring to existing out of bed incentives framework and for a residual part related to the new ROS integral schemes.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Thank you. Now move on the financing. Will be your cost of debt at the 2025, please? Cost of debt will be around for the first half of the year is at around 2.6%. The cost

Francesco Beccario, CFO, Terna S.p.A.: of debt for 2025 will be slightly below 3%. Since in the second half of the year, we expect net financial charges to increase compared to the first half, primarily due to the issuance of new debt at a higher cost vis a vis the average cost of the existing debt.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Thank you. Regarding the acquisition of High Volt adjusted, do you expect further deals?

Francesco Beccario, CFO, Terna S.p.A.: Well, we are aware of the public interest in the consolidation of High Volt adjusted to achieve synergies and have a more efficient system overall, for which Herrera, as you know, has set an incentive scheme for deals closed in 2025 and 2026. For this reason, we cannot exclude undertaking other small potential transactions linked to market opportunity that should be fully aligned with our strategic target. Thank you.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Could you remind us the remaining financial flexibility in terms of additionally hybrid instruments? And would you still prefer hybrid capital increases?

Francesco Beccario, CFO, Terna S.p.A.: As you know, our ambitious CapEx plan could lead to a deterioration of the financial ratios of in the future. As we already communicated to the market during the presentation of the update of the strategic plan in last March, Despite this acceleration in CapEx, we aim to preserve a solid and sustainable capital structure, also to reissue a further hybrid instrument, if needed, up to the full capacity that we estimate to be at around €4,000,000,000 towards the end of the plan. Let’s let’s consider then we that we already have in the at the moment, 1,800,000,000.0 of hybrid already issued. Furthermore, in order to protect our rating, we can rely on a wide range of further tools, such as, for example, public grants that, if necessary, Perna could seek could seek in an additional amount to reduce the company’s debt and strengthen the financial structure. Please consider that in the current plan, we already assumed slightly above €1,000,000,000 of grants.

We can also rely on CapEx prioritization. Terna indeed may prioritize expenses related to investment costs, seeking to defer some of them to later years. And finally, we can also consider the potential valorization of our noncore assets and the nonregulated activities. All the previous options are considered more efficient than a capital increase. Therefore, as already stated in the strategic presentation, as of today, we do not see any strong rationale for a capital increase of the company.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Thanks, Francesco. Finally, we have received the last question for you, Jussi. Could you comment about the evolution of electricity demand in 2025 and the impact from data centers?

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Well, you may recall, I already commented on the evolution of demand so far this year during the presentation. It isn’t here. So we have seen a gradual change in consumer behavior related to the high temperature. Now regarding data centers, as of June 2025, the total high voltage connection request reached approximately 50 gigawatts marking a further acceleration compared to 42 gigawatts at the March 2025. And for this reason data centers will represent one of the drivers together with the electrification of domestic consumption, electric mobility.

Underlying the increase we expect to see in power demand in future years.

Stefano Gamberini, Investor Relations, Terna S.p.A.: Very well. Many thanks, and for all the participants to our call. Our Q and A session is now over. The Investor Relations team remains available for any follow-up question you might have. Thank you for participation, and enjoy your summer break.

Giuseppe Niedi Foggia, CEO and General Manager, Terna S.p.A.: Thank you, Stefano. Hello, everybody. Goodbye. Goodbye.

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