Terna (TRN) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 rose 9.6% year-over-year to €988.7 million, driven by both regulated and non-regulated activities, with EBITDA up 7.0% to €697.6 million and net profit stable at €276.5 million.

• Net debt decreased by €830 million to €12,170.2 million since December 2025, supported by the issuance of an €850 million perpetual hybrid green bond.

• Capex declined 9.0% year-over-year to €511.4 million, reflecting the completion of major grid projects in the prior period.

• Strong ESG recognition, including top 1% in S&P Global Sustainability Yearbook, MSCI AAA, and EE+ from Standard Ethics.

• Leadership transition occurred with the CEO's departure and interim management by the Chairman until the May 2026 AGM.

Financial highlights

• Revenue from regulated activities grew 5.2% to €794.7 million; non-regulated activities surged 32.3% to €194.0 million, with EBITDA margin at 70.6%.

• EBIT rose 3.9% to €449.8 million; profit before tax increased 2.3% to €403.2 million.

• Net financial expenses increased due to higher average net debt and interest rates.

• Tax rate increased to 31.1% from 30.1% due to a temporary IRAP rate hike.

• Equity attributable to owners of the Parent rose to €8,901.8 million from €7,791.3 million at year-end 2025.

Outlook and guidance

• 2026 guidance targets revenue of €4.41 billion, EBITDA of €2.93 billion, and net profit of €1.12 billion.

• Capex for 2026 is projected at approximately €4.2 billion, focusing on grid resilience, digitalisation, and renewable integration.

• Full 2026 guidance confirmed, supported by strong Q1 performance.

• Ongoing focus on operational efficiency, digitalisation, and ESG commitments.

• New industrial plan to be published in 2H 2026.