Good afternoon, everybody, and thank you for joining this conference call to present the results as of 31 December 2025 of Gruppo Iren. The results will be presented by the Executive President Luca Dal Fabbro and by the CFO Giovanni Gazza.

At the end of the presentation, there will be the usual Q&A session. I will now give the floor to Luca to present the results of the period.

Thank you, Carlo. Good afternoon to all of you, and thank you for joining us today.

The Board of Directors meeting today approved the results as of 31 December 2025, showing a growth at the EBITDA level of up 6%, exceeding the €1,250 million, and a 12% at group net profit reaching about €300 million. The increment of the EBITDA is supported by the organic growth for the investments operated in the last few years, of the synergy plans, and the consolidation of the Gruppo Egea that contributed to the group for about €60 million.

74% of EBITDA of the group was generated by regulated or semi-regulated activities, confirming the strengthening and the strategic positioning of the core regulated businesses, and this is a stability element in such an uncertain period. The net financial position grew by about €140 million, reaching about €4.2 billion.

The increment at 3% allowed a decrease in the IFNA/EBITDA ratio at 3.1 times, as anticipated in the last guidance last November. Operating cash flow fully covered the more than €920 million in technical investments.

The results of the group in line with the strategic plan presented in November 2025 allow us to propose in the next shareholders' meeting a dividend amounted to 13.86 cents per share, growing by 8% compared to last year, with a payout of about 60%. Sustainability, which is one of the pillars of our group strategy, continues to guide the strategic choices of investment.

That's why at the end of the year, I would like to share with us the main results reached. During 2025, 73% of investments were destined to projects that support the transition plan towards 2040.

Concerning green transition, we confirm what we anticipated in November during the transition plan towards 2040, that is that for some indicators we need more time so that the planned interventions can really become measurable results. This is the case, for example, carbon intensity that remains stable compared to last year.

The investments made in the environmental sector allowed a further increase of a 1% point in separate waste collection, bringing it to 70.5%. There is a slight decrease in material recovered at group's facilities due to the unavailability of the plastic recovery plant in Cairo Montenotte following the fire that occurred in August 2024.

2025 was particularly important due to the strengthening in our local presence, thanks to the consolidation of Egea that contributed to an increase in the municipalities served in waste collection, customer base, and the volume served for district heating. Finally, the quality of our services is the base of the daily management of our activities that are stable with a stable customer satisfaction at an excellent level, water leakages at 31%, due to the extension of the managed perimeter, and thanks to the excellent parameters services of Iren Plus and the green energy sold at final customers as foreseen in the industrial plan.

As usual, moving to page 4 in our presentation, we can see the main economic financial indicators and the moving parts of the period. EBITDA reaches €1.25 billion, up 6%, thanks to the positive contribution of Egea for €60 million, more positive results than foreseen at the beginning of the year thanks to €5 million of synergies.

The efficiency gains were in fact made possible by the early full consolidation of Egea to 100%, which enabled an acceleration of integration activities, the streamlining of various holding functions, and the direct coordination of business operations. During 2026, we foresee that we will complete the integration at company level, and today we already integrated the market and environment business units and also at operating level.

The second elements is the positive contribution to organic growth of regular businesses, amounted to €22 billion, driven by the full execution of planned investments and a strategy aimed at standardizing the group's presence in regulated segments, with a strong focus on improving service quality. The third item is synergies that are in line with the planned expectations at about €20 million, and the amount of the synergies in 2025 is 2.5 times higher than in 2024, signaling that this is a good level for an increasing group's profitability.

The energy value chain reported an overall increase of €7 million despite being negatively affected by several factors: the absence of the strong margins recorded in 2024 in gas segment, lower hydroelectric generation volumes, and lower prices for renewable technologies compared to the previous year. EBIT amounts at €530 million, up 2%, due to the higher amortization and provisions to bad debt.

Group net profit instead amounts to €301 million, up 12%, and it benefits from the acquisition of majority interests of the Iren Acqua company and a reduction of the tax rate. Overall investments of the year amounted to €1.45 billion, of which €925 million in technical investments, up 12%, mainly destined to the development of the hydroelectric and electricity network, waste treatment, and the completion of waste treatment plants.

The financing of these investments, through the issuance of a €500 million hybrid bond, made it possible to contain the increase in net financial debt to €4.22 billion, resulting in a reduction in an EBITDA ratio at 3.1 times. I will now give the floor to Giovanni for an in-depth analysis of business dynamics.

Thank you, Luca, and good afternoon, everybody. We will now go more in depth in the business units performance, starting with the network business unit that you can see at page 5.

The EBITDA increase of 11% amounted to €51 million was generated by all three business lines. In general, we can see that the organic growth generated €22 million, partially offset by the reduction of WACC on the gas and electricity distribution with a down of €7 million, and the consolidation of Egea that contributed for €12 million.

Finally, the efficiency plan delivered a positive contribution of approximately €8 million. More in detail, we can strengthen the integrated water service and the organic growth and the consolidation of Egea contributing for €15 million overall.

The positive result of the period is also supported by two non-recurring extraordinary items: €8 million related to the ARERA award for technical quality, and €3 million for a previous tariff adjustment. These positive elements offset the absence of an extraordinary recovery of inflation amounted to €9 million that was accounted for in the first quarter of 2024.

In the electricity energy business line, an increase of €30 million is mainly due to the increase of remunerative trend due to the increase of RAB, up 7%. Finally, the gas distribution business, the result increased by €21 million, benefiting from the consolidation of Egea's networks for €5 million, the extraordinary recovery of operating costs recognized for the 2020-2025 period under ARERA resolution number 570, amounting to approximately €30 million, and from other minor items totaling €4 million.

The investments made during the period, exceeding €280 million, register a 8% growth compared to 2024. This demonstrates the strategy of the group, which is aimed at standardizing regulated businesses.

These investments are focused on improving the quality of the services provided, with the aim of ensuring high quality standards and a continuity in achieving the incentives established by ARERA. Moving to the environment business unit at page 6, EBITDA in 2025 reached €277 million, growing by 8% compared to 2024.

Waste collection activities recorded an increase of €60 million driven by the consolidation of Egea, up €3 million, and the one-off tariff recognition of past operating costs in the latter part of the year amounting to €13 million. Treatment and disposal activities positively contributed to the business unit's results with a higher contribution compared to 2024 of €5 million.

This result was achieved mainly thanks to the launch of the efficiency plan across treatment and material recovery plants. These positive elements for the periods include also the contribution for environmental remediation activities, and the lower volumes of waste disposal of in landfills due to site saturation and the lower prices for electricity generated from WTE plants offset the positive factors.

Overall, the volume of waste managed during the year increased by 2%, supported by growth both in municipal and special waste, mainly as a result of the integration of Egea. Continuing the analysis with the energy business unit on page 7, we note a reversal of the trend at the end of the year compared to previous periods due to a contraction in prices and hydroelectric volumes, which led to a decrease of €60 million in the fourth quarter of 2025 alone.

Looking at the overall effects recorded during the year, which resulted in a decline for renewable generation of €35 million, we can note that PUN values were lower than in 2024, hydroelectric production was down by 165 GWh, and we also recorded a lower solar radiation offset by the full contribution of the 38.5 MW photovoltaic plant which only became operating in the second half of 2024. Regarding photovoltaic capacity, a 20 MW plant built in Sicily became active in October, while at the beginning of this month an 8.5 MW plant was built in the province of Bologna and became operational.

Thermal and cogeneration production reported growth of €19 million due to the higher capacity payment and increased production volumes, up 170 GWh, also thanks to the full availability and efficiency of the new 400 MW thermal unit in Turbigo. The higher contribution from the capacity market, up €17 million, was almost entirely offset by the decline in the ancillary services market, MSD, with a performance that was €15 million lower than in 2024.

Heat increased by €9 million driven by higher volumes resulting from network expansion and the consolidation of Egea. These factors were partially offset by a slight decline in unit margins.

In particular, the reduction on the thermal spark spread is linked to the high margins achieved in 2024 supported by particularly favorable and non-repeatable hedging operations. Finally, also the segment of energy efficiency is positive, up €3 million due to increased building activities.

We conclude the analysis of the business units with the market segment on page 8, which reports an increase of €12 million, up 5%, driven by the consolidation of Egea, up €29 million, and by synergies achieved through the optimization of commercial processes. These more than offset both the lower margins on electricity sales and the absence of the extra margins recorded last year in gas sales.

Volumes sold increased both for electricity, up 18%, and gas, up 10%, as a result of the consolidation of Egea, and the customer base increased by 2%, exceeding 2,350,000 customers served. The contractual strategy implemented after the 2022 energy crisis allows us to allowed us to be more resilient to potential commodity price fluctuations, with 72% of contracts at variable prices and only 28% at fixed prices.

Market competition remained high, with higher churn rates than in previous years. However, towards the end of the year, we observed some stabilization in the indicator, which did not increase compared to September's level.

Finally, we confirmed a positive commercial trend in the sale of high-volume of high value-added products and services, which recorded an increase of €3 million compared to 2024. Moving to slide 9, we can identify the main elements that enabled the group to achieve a net profit of €301 million in more detail.

Depreciation and amortization increased by €61 million driven by investments as well as the consolidation of Egea, which contributed for €22 million. Provisions for bad debt increased by €12 million mainly in the environment BU due to the shift in revenue recognition for environmental sanitation services from a tax collected by municipality to a fee collected directly from customers by the group.

The average cost of debt stood at 2.4% higher than in 2024, mainly due to the interest rate differential between new bond issuances and those that were repaid, which had particularly favorable rates. We recorded a higher contribution from companies consolidated at equity, up €7 million.

Net profit attributable to the group for the period amounted to €301 million, up 12% compared to last year, thanks to the higher EBITDA, a lower net profit attributable to minorities, and a lower tax rate, which, as already highlighted during the year, stands at 27.8%, benefiting from non-recurring tax items related to the consolidation of Egea. I conclude the economic and financial analysis with the evolution of the net financial position, which stands at €4.22 billion, up 3% compared to 2024.

It should be noted that the operating cash flow amounted to €943 million, fully covered the €925 million cash out for technical investments. Within operating cash flow, we recorded an increase for Superbonus of €43 million, as the credits accrued from rebuilding activities exceeded the credits sold and offset.

The increase in net working capital by €148 million is mainly attributable to three factors: one, tariff receivables in regulated businesses, the so-called extra CapEx, due beyond 12 months, amounted to approximately €80 million, of which around €40 million were related to the water service and €25 million to waste collection, plus other smaller receivables related to deferred incentive collections; two, €60 million are due to a reduction in trade payables linked to the seasonal pattern of investments, in 2025 they were more concentrated in the first part of the year, but also to the decline in energy prices that characterized the latter part of the year; three, finally, around €10 million receivables to be collected for contributions related to RRN-funded projects. The cash outflow from M&A transactions, acquisition of minority stakes in Iren Acqua and Egea, was offset by the issuance of a hybrid bond in January 2025.

I will now hand the floor back to Luca for the conclusion of the presentation.

Thank you, Giovanni. To conclude the presentation, we will now look at 2026, the current year, which will be characterized, according to us, by the implementation of the strategic plan, primarily focused on regulated businesses, with the rollout of the first actions aimed at further sharpening our business model; two, the maintenance of financial targets and current rating assessments; three, the continuation of the efficiency plan, which foresees a target of approximately €20 million in additional synergies by the year-end.

Regarding energy production, in the first quarter of 2026 we can see that while gas-fired generation and heat production are broadly in line with last year, hydroelectric production is down by approximately 80 GWh. This trend is attributable to the start of 2026 with hydro reservoirs substantially depleted due to scheduled extraordinary maintenance works on the reservoirs.

Therefore, in 2026 we expect an EBITDA growth of 4% compared to 2025, technical investments of approximately €950 million, and a stable EBITDA ratio of 3.1 times. We can now move to the Q&A session.

Thank you very much.

Yes, hello. Good evening, everybody, and thank you for this presentation.

I had two questions. The first is a bit about the context in a situation of emergency for Europe due to the geopolitical crisis.

How do you see the impact for a company like Iren of the measures introduced by the government in the energy sector? Can you give us an update about your forecast for 2026 and 2027 and how this hedging strategy may compensate a higher volatility in the sector and in energy prices?

This was the first question. The second question was related to the net income guidance.

What do you think may be the impact in 2026 and 2027? Can you share a guidance on the net impact also for 2026?

Third and last question, I would like to have an update on the supply business, the dynamics that you mentioned, but I would like to have more insights on the first quarter of 2026, what you're seeing at the moment. Do you think there should be updates or changes to your policies and supply activities?

Thank you very much.

I will give an introduction and I will give the floor to Giovanni. Talking about the context, it's a very volatile context.

Concerning the impact of the government measures on the energy sector, we are waiting to see what the ARERA will say about it, yes, but we cannot see a high economic impact. I will now give the floor to Giovanni.

In 2026, we already did an important hedging strategy. Concerning supply, we covered contracts with a fixed rate at 5%.

Concerning production, we covered all our renewable production at 65% with a price of €105. We would also like to note that a small part of our production would not be subject to these provisions due to the green certificates.

This hedging strategy allows us to say that we have about 500-600 GWhs uncovered and that are subject to interventions to regulate the prices in a very low way. Referring to bills, the increase of 2% of IRAP on the energy consumption was estimated at €7 million.

We expect that if this provision will be kept with this percentage, there will be a negative result of €7 million. What we foresee in 2026 regarding supply, as we already said, we see a stable churn.

Especially in the last part of 2026, we foresee a slight reduction of margins of about €5 per customer compared to 2025. We can say that the first quarter is not marked by particular dynamics regarding churn rate.

On the production side, as we already said, we point out a reduction on the hydroelectric production compared to last year of about 80 GWhs. These are the main aspects in the energy line that will be related to the first quarter.

Good afternoon. Thank you for this presentation.

I would like to do a follow-up on Javier's question. Because you gave the positions open for 2026, I would like also some indications about 2027.

If you could clarify if in 2027 there is more margin for more benefits in power generation, because the measures from the government can only compensate what the scenario will develop into. If there is an intervention on the side of government, there could also be a positive result.

I would also like you to comment on how you will manage the spark spread dynamic that at the moment had a breakdown, had a collapse. The situation with the gas is not good, and there was a collapse at 10 GWhs in gas production.

How do you foresee the situation to develop? Concerning the scenario, I would like you to give us an explanation about gas procurement.

If you have contracts that could have any issues due to force majeure, or if there are any issues related to the volumes or to the dynamics of guarantees liquidation, as we saw in 2022. Last question, if you can remind us what could be the elements of 2025 recurring in 2026?

Thank you very much.

Yes. Compared to 2027, we can already explain our coverages.

For 2027, we expect our renewable production of 2.1 TWh, and at the moment we have covered 20%. We covered 20% at a price of about €105 MWh.

Of this 2.1 TWh, we have a covered part, a part that is covered by green certificates and with incentives. We have about 1.5, 1.6 TWh.

We could have an advantage related to the prices for 2027. These are the volumes.

Concerning the spark spread, as you said, the dynamics are highly volatile. The forward do not give any signals of results.

The spark spreads become more positive as we go near every day to the delivery, and they are strongly marked by the gas prices. On the thermoelectric side, in 2026 we cover 20% of thermoelectric production because this would mean losing the possibility of margins that we generate every day with a high volatility on the delivery phase.

Concerning gas procurement, our supply contracts foresee a delivery at PSV Italia. We have no force majeure clauses, or they are only linked to the national territory.

This contractual position puts us in a safe position concerning risks of supply. Also consider the fact that from Qatar we receive 4% of liquefied gas for Italy.

This is a low volume, and so we don't have force majeure clauses unless we count the one on Italian soil.

Good afternoon. Thank you for allowing us to ask you questions.

One is on the investments foreseen for 2026. Concerning the target, they are a bit below the average that you usually estimated for the following year.

Where will the investments be focused in 2026? The second question concerns hydroelectric concessions.

Are there any updates on the renewal process, and how do you intend to proceed? Thank you very much.

Yes, concerning CapEx, we foresee coherent with the industrial plan that this is a business units that we would like to develop and focus on, about €140, €150 million for environment, €250 for energy, and €260 million for the market side. The investments are corporate investments, also an upgrade of IT systems, also in line with the new NIS2 directive, which must be complied with by 2026.

Concerning hydroelectric aspects, the current directives were put in doubt, and we are now discussing with the government the possibility of a so-called fourth way, which is an extension of the concessions by paying a fee to the companies or to the families. This is something that we are monitoring, and this applies to all operators and not only to us.

We are expecting the decisions of the institutions by the government, by the ARERA.

Good afternoon. Thank you for this presentation.

I also have a few questions. The first one is a follow-up about the guidance concerning EBITDA.

Could you please sum up the 4% of growth foreseen, and a confirmation of the guidance of the capital market of net profit in 2026? I don't know if you already answered these questions.

Also the one-off increase of IRAP. This is the first question about the guidance.

The second question is about asset rotation. Could you please describe the reasons for the decision to sell the assets, I don't know if only a part of a majority of the renewable assets, in particular photovoltaic assets?

Could you give us the reason for this decision? Then something more about the numbers for hydro production, I don't know if the GWhs that reduction in GWhs are referred only to a part or to the whole 2026.

If the volume of GWhs is seen, and what is the total volume you refer to in 2026? I marked down 2.1 for 2027, but I didn't catch the number you said for 2026.

Then I've seen that there was an increase of provision on bad debt of about €10 million. I would like to understand if you have a guidance on 2026, if this was a one-off related to 2025, or if this will continue or it will increase in 2026.

Finally, a last question. I saw a €43 million release in 2025 concerning credits generated by Superbonus.

Could you please remind us if there is still a residual part in 2026 or in the following year? Thank you very much.

Yes, I would like to start with the target of hydroelectric production in 2026. This reduction for the first quarter is a reduction of about 550 GWh on year production because it is due to a lower reservoirs at the beginning of the year.

There were maintenance works on the reservoirs, we started with a little water in the reservoirs. What we foresee for 2026 is 1.2 TWh of hydroelectric production, about 580 GWh of increase for photovoltaic because we have higher powers installed.

As we have said, [unclear] plant in Sicilia and Bologna's plant will become operational, we have a higher capacity and we foresee a target of 250-270 GWh. Then the usual 150 GWh from thermo.

Concerning the provisions, we had an increase due to the change from a tax to a tariff to a fee. This was implemented in the foreseen municipalities, and we foresee that they will remain at an amount that is stable also for 2026.

As for Superbonus, we can say that the activities were terminated, we don't have more initiatives, or only limited initiatives related to non-profits organizations. We foresee in 2026 to liquidate the credit €43 million generated in 2025, and also to liquidate a further amount of about €90 million.

This cashing in will compensate the increase in net circulating capital linked to extra CapEx that will characterize 2026 as well. Regarding EBITDA, the growth of 4% is driven by synergies.

In 2025, we reached €950 million. We are planning to add another €20 million in 2026, and we also activated a specific project for the performance improvement in addition to the ones we had in previous years, and this will contribute for €20 million.

Concerning business dynamics, we have organic growth on the networks, a slight increase in the environment business unit by recovering the margins for the treatment plants. We believe we can also generate €5 million in 2026.

The energy side is driven by the prices and by a higher contribution of the capacity market of about €15 million more than 2025. Concerning the market business units, we foresee a reduction, as we said before, of about €5 per customer and overall a reduction of €10 million.

Regarding net profit, we don't give a guidance. We will give it during the first quarter analysis, as is usual for us.

I will give the floor to the President for the asset rotation. Concerning asset rotation, I confirm that no decision was taken that is different from the industrial plan.

Of course, with the aim of optimizing the asset allocation. At the moment, we didn't take any decision.

We don't foresee to sell photovoltaic, and we will assess opportunities should there be an opportunity. This doesn't mean we would like to stop investing in renewable energies.

We are one of the major supplier of hydroelectric in Italy. In this stage with the Hormuz crisis, we should look at the opportunities in sale and also in acquisition.

I have also read in the newspapers some rumors, but there are no decisions already made.

Good afternoon. Thank you for this presentation and for accepting my questions.

I have a couple of questions related to debt. The first one is a clarification about the approximately €90 million that you reported as a guidance for 2026 in the guidance for extra CapEx.

I would like to ask if this is something that is not recoverable, about €30 million more than the €60 million, or if you are investing more and thus creating a regulatory capital, and if you have a plan to recover this cash that at the moment you are not recovering? Also concerning debt, in light of the scenario that we are seeing in these weeks, do you see anything that has an impact on the medium term, or does this force you to ask for credit lines and this will impact also the financial burdens on the short term?

Thank you. See,

concerning circulating capital, it is correct this interpretation that this extra CapEx credits that are recognized on an economic and financial point of view will be recovered at a later date. On these credits, the inflation is foreseen, we foresee to invest about €50 million on the networks, and this will generate credits, and this will be recovered in the following years.

I would say starting from 2028. In 2027, there should be less credits, the amount should be lower.

In 2028-2029, we should recover the tariffs. These credits are recognized also in the new concessions.

Should there be a succession, the new managers should recognize this difference. Concerning the debt 2026, we don't have significant margin calls because our operations are mainly on the DC market and very low on hubs.

We don't foresee any negative impact on trade. We are waiting for the conversion of the decree to see if there should be any additional measures that at the moment are not known on the invoicing mechanism.

Thank you very much for your attention, for your questions, and I would like to wish you a good afternoon and we will hear each other next time. Bye.