Today, the Board of Directors of IREN S.p.A. approved the consolidated financial statements at 31 December 2024.

Luca Dal Fabbro, Chair of the Group, said: "We close 2024 by approving positive results supported by both organic growth of the different businesses and inorganic growth thanks to the integration of Acquaenna and Sienambiente. Corporate consolidation not only accelerates growth and strengthens the Group's territorial presence, but also enables new development projects. This ability to extract value from the acquired companies has prompted us to bring forward the consolidation of Egea as early as 2025, favouring new investments in the local areas such as the development of the district heating network in Alessandria. On the financial side, sustainable finance increased during the year through the issuance of two new Green Bonds with a total value of 1 billion euro. Furthermore, in January 2025 we issued Iren's first Hybrid Bond worth 500 million euro to support inorganic development. The healthy results achieved, including a 5% increase in net profit, allow us to propose, in line with the Business Plan forecasts, an 8% increase in the dividend to 12.83c€/share."

"A year, 2024, characterised by important milestones also from a sustainability perspective – said Iren Vice-President Moris Ferretti – First of all, we have prepared for the first time an integrated annual financial and sustainability report, in line with the CSRD requirements, applying the new ESRS reporting standards. Furthermore, during 2024, the path towards the sustainability goals of the Business Plan continued in all businesses: sorted waste collection reached almost 70% in all served territories, renewable energy sold is up by more than 36% compared to last year, carbon intensity is down by about 7% thanks to the significant increase in hydroelectric and renewable production, and water losses remain stable at 31% despite the integration of the recently acquired companies in which performance is still being optimised. Our commitment to continuous improvement in economic, financial and sustainability results is made possible by the contribution of more than 11,300 people, up by about 300, who work daily to support the value creation we share with our stakeholders."

Gianluca Bufo, Chief Executive Officer and General Manager of the Group, said: "We now approve an EBITDA of over 1.27 billion, which is above Guidance, and up 6.5% from last year. This confirms the development trajectory outlined in the business plan and Iren's ability to adapt to different market contexts thanks, above all, to its multibusiness model. The increase in profitability, supported by the recovery of margins of the Networks business unit and the sales of commodities and services, allowed us to reduce the debt level to 3.2x. Supported by the results achieved, we look to the future to make Iren even more solid, through a more disciplined and selective approach to investments, which will allow us to continue to grow mainly in regulated activities and in increasing the quality of service to the territories. A concrete future already in 2025 where we expect further growth in EBITDA of between 1,340-1,360 million euro. Finally, in the coming months we will work with all 11,000 people in the group and with the new board of directors to define a new strategic plan for Iren that will consolidate the company's role as a key player."

IREN GROUP: CONSOLIDATED RESULTS AT 31 December 2024

Consolidated revenues as at 31 December 2024 amounted to 6,043.1 million, down -6.9% compared to 6,490.4 million euro in 2023. The main factors for the drop in sales were energy revenues, which were affected for more than 300 million euro by the reduction in commodity prices and for about 338 million euro by the reduction in energy efficiency activities such as building energy upgrades, due to the gradual completion of works related to the 110% Superbonus. Significant tariff revisions by both the Networks BU and the Waste Management BU and changes in the scope of consolidation had a positive impact on revenues for the period, for roughly 51 million euro, and refer mainly to the consolidation of Sienambiente and Acquaenna.

Gross operating profit (EBITDA) amounted to 1,274.1 million euro, up +6.5% compared to 1,196.9 million euro in 2023. The period was characterised by a less favourable energy scenario than in 2023, by major tariff revisions affecting the Networks BU (with the positive update of regulatory parameters) and the Waste Management BU for waste collection activities, by the full recovery of the commercial margins of the Market BU and by the start, albeit not yet fully operational, of the operational phase of some plants of the Waste Management sector, and was negatively impacted by the gradual completion of the sites linked to the Superbonus 110%.

As far as the energy scenario is concerned, the main factor characterising the period was the drop in the price of electricity (-15% on 2023) and, consequently, in electricity and heat generation margins; this had a major negative impact on EBITDA (-141 million euro), which was partially absorbed (+78 million euro) by the higher volumes of electricity produced, particularly by hydroelectric production (+35% on 2023), which benefited from an improvement in the water availability of the period and photovoltaic production due to the entry into operation of new plants (+35.1% on 2023).

The marketing activity of energy commodities was particularly positive (+59 million euro), with particular reference to the sale of electricity, which benefited from a significant recovery in margins.

A positive contribution to the margin was also generated by organic growth related to tariff increases as a result of investments made in the Networks BU in recent years (+17 million euro) and tariff revisions at the beginning of the year (+77 million euro).

Within the Waste Management BU, waste treatment and disposal activities were down due to lower plant operations due to maintenance and breakdowns (-27 million euro), compared to a recovery in the profit margins from waste collection activities, which benefitted from the positive effects of tariff regulation (+25 million euro).

The Energy Efficiency sector declined (-37 million euro) due to the gradual completion of the sites related to the 110% Superbonus on condominiums and the delayed start due to regulatory uncertainty of construction sites on Onlus (non-profit organisations).

Finally, perimeter changes related to the consolidation of Sienambiente (as of January 2024) and Acquaenna (as of June 2023), amounting to approximately 18 million euro, contributed to the margin improvement.

The change in the margin with reference to the individual business units is broken down as follows: marked improvement in the Market business unit (+29.9%), Networks (+27.7%), Waste Management (+4.2%), Energy (-26%).

The Operating Result (EBIT) amounted to 519.7 million euro, an increase of +11.9% compared to 464.4 million euro in the previous year. The period saw higher amortisation/depreciation of approximately 55 million euro related to the entry into operation of new plants and the expansion of the consolidation scope, lower provisions for risks of about 44 million euro mainly due to the extraordinary allocations made in 2023 as a result of the provisions of the “Sostegni ter” Decree Law and no longer repeatable, and higher provisions for bad debt of approximately 3 million euro. Other write-downs of about 12.5 million euro were also recorded, mainly due to the effects of the fires that occurred in the second half of 2024 at the Cadelbosco, sorting and treatment plant for plastic from sorted waste collection, the Terranuova Bracciolini treatment plant and the Gavassa FORSU treatment plant.

Group net profit attributable to shareholders amounted to 268.5 million euro, an increase (+5.4%) from the result recorded in 2023. The growth reflects the EBITDA trend and improved financial management to offset a higher incidence of taxes, which in 2023 had benefited from the non-taxability of tax credits, recognised to counter the energy costs of energy-intensive companies.

Net financial debt stood at 4,083 million euro as of 31 December 2024, an increase (+4%) compared to the 31 December 2023 figure. In this regard, the operating cash flow, positively impacted by EBITDA and the mobilisation of tax credits from the 110% Superbonus in the amount of about 250 million euro, amounted to more than 1 billion euro at the end of the year, fully covering the investments made and enabling a reduction in the net debt/EBITDA ratio to 3.2x.

Gross investments made in the period amounted to 942 million euro, up (+0.9%) compared to 2023, of which 830 million euro in technical investments and 112 million euro in financial investments attributable to the acquisition of the minority stake in Egea (87 million euro), the consolidation of Sienambiente (19 million euro) and the purchase of authorisations for the construction of the new Rovigo agri-voltaic plant (5 million euro). It should also be noted that 76% of investments were directed towards sustainability projects in line with the business plan forecasts.

From the point of view of sustainability, 2024 marked a further step forward in the path of sustainable growth outlined in the Business Plan: carbon intensity stood at 315 gCO2/kWh (-6%) as a result of the increase in renewable production, particularly hydroelectric, and the drop in gas and WTE production; sorted waste collection reached almost 70% in all areas served and the waste to material recovery plants exceeded one billion tonnes (+13%) and green energy sold to end customers stood at almost 2,400 GWh (+36%) triggering, together with the products and services of Iren Plus, energy savings for customers of over 470,000 tonnes of oil equivalent (+33%). During the year, there was an increase in the number of municipalities served by the waste collection business, which exceeded 550 following the award of the contract to the Cuneo Ecological Consortium and that of the Province of Asti, and an increase in the number of customers in the energy sector to 2.3 million by the end of 2024 (+5%), thanks to the commercial strategy based on customer development and excellence of the customer experience. In addition, the extension of the district heating network continued, exceeding 102 million cubic metres (+1.2%). Finally, water losses stood at 31%, in line with last year, despite the expansion of the scope with the inclusion of Acquaenna, impacted by the drought and an unfavourable climate during the year.

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