Terna Rete Elettrica Nazionale Spa Stock Earnings Reports

Terna delivered a solid H1 2026 driven by strong execution on grid development and improved financials. Key operational highlights include major progress on the Tyrrhenian Link (submarine cable installation completed on the Eastern section), integration of ~3.4 GW of renewable capacity and >1 GWh of storage, and that ~92% of plan projects are contract-awarded and ~93% have completed authorization. CapEx accelerated to EUR 1.6 billion (up 20% YoY), ~EUR 1.5 billion in regulated activities (60% development, ~30% renewal/efficiency, remainder defense). Financially, group revenues rose ~12% to EUR 2.1 billion (regulated +4%, nonregulated +50%), EBITDA was ~EUR 1.5 billion (+8%), EBIT EUR 961 million (+5%), and net income EUR 591 million (+1%). D&A increased due to new assets; net financial expenses rose as average cost of debt increased. Net debt stood at EUR 12.6 billion (down ~EUR 0.5 billion vs YE 2025), supported by strong cash generation (~EUR 1.7 billion) and a successful EUR 850 million European Green Hybrid Bond issued in January. Management confirmed 2026 guidance and reiterated disciplined capital allocation while preparing an updated industrial plan to align with the forthcoming ARERA regulatory review (regulatory framework expires end-2027; new plan to be shared in 2027, 10-year development plan to be presented H1 2027). Other investor-relevant items: output-based incentives (OBIs) recognized ~EUR 76 million in H1 and guidance for full-year OBIs ~EUR 200 million; nonregulated EBITDA grew materially (to EUR 106 million) driven by Energy Services and Equipment segments; exposure to potential WACC changes remains a key regulatory risk, while procurement/geopolitical risks are mitigated by contract coverage and regulatory recognition of raw material cost in RAB. Management remains open to selective, disciplined M&A but emphasizes that nonregulated activities complement and reinforce the regulated core.