This article first appeared on GuruFocus .
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Adjusted EBITDA:EUR775 million, up 9% year-on-year.
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Adjusted Net Income:EUR375 million, up 2% year-on-year.
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Investment:Approximately EUR1 billion, including the acquisition of control over OLT.
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Net Debt:EUR18.5 billion, up from EUR17.5 billion at the end of 2025.
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Average Cost of Debt:Stable at 2.6%.
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Cash Flow from Operations:Around EUR860 million.
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Storage Levels:Reached around 53% of capacity by the end of April.
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LNG Imports:52 cargoes delivered to Italy, accounting for 33% of total gas imports.
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Sustainable Finance:Reached 86% of committed financing, up 1% from December 2025.
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Full Year 2026 Guidance:Adjusted EBITDA around EUR3.1 billion; Adjusted Net Income above EUR1.45 billion; Net Debt around EUR19 billion.
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Release Date: May 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Snam SpA ( SNMRF ) reported a 9% year-on-year increase in adjusted EBITDA, reaching EUR775 million, driven by organic growth and a larger perimeter.
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The company successfully completed the acquisition of control over OLT, expanding its LNG footprint, which is crucial for national energy security.
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Moody's upgraded Snam SpA's rating to Baa1 with a stable outlook, and S&P Global Ratings revised its outlook from negative to stable, confirming the company's strong credit profile.
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Snam SpA achieved a 90% filling target for gas storage ahead of the next winter, enhancing energy security and mitigating price volatility.
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The company made significant progress in sustainability, with sustainable finance reaching 86% and maintaining its inclusion in the Dow Jones Sustainability Best-in-Class index.
Negative Points
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Net debt increased to EUR18.5 billion from EUR17.5 billion at the end of 2025, due to investment activities and acquisitions.
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Adjusted net income saw a year-on-year decline of 8%, attributed to higher depreciation and financial charges.
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The company faces geopolitical uncertainties that have driven price volatility in the gas market.
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There was a temporary reduction in gas flows in the EMG pipeline due to the conflict in Iran, impacting first-quarter results.
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The average cost of debt remained stable at 2.6%, but higher net financial expenses were noted due to increased average net debt.
Q & A Highlights
Q: Can you provide insights on the new CCS regulation and its impact on your strategic plan? A: Luca Passa, CFO, explained that the regulation is still in the drafting phase by ARERA. The current plan includes EUR800 million in CCS investments, with expectations of a 100 basis points higher return than gas transport and storage. More visibility is expected later this year, with a final investment decision anticipated in early next year.
Q: How might geopolitical tensions in the Middle East affect your associates, and what is the impact of Enagas entering Terega's shareholding? A: Luca Passa stated that the only impact was a temporary reduction in gas flows through the EMG pipeline, with minimal financial impact. The entry of Enagas into Terega is seen positively, potentially increasing the asset's value and aligning with Snam's strategic goals.
Q: Are there any signs of gas demand destruction in Italy or neighboring countries, and what is the government's stance on gas consumption? A: Luca Passa noted a slight decrease in April due to weather but no significant demand destruction. The government is focused on reducing energy bills rather than limiting gas consumption.
Q: Can you update us on the asset rotation program and any progress on biomethane asset sales? A: Luca Passa mentioned that the asset rotation involves EUR1.6 billion in disposals and EUR1.2 billion in acquisitions. The biomethane sale process is progressing, with binding offers expected before summer and a potential signing by year-end.
Q: Could you clarify the net profit guidance and provide an update on TAP's capacity expansion? A: Luca Passa confirmed that the adjusted net income guidance includes a EUR40 million IRAP increase. TAP's capacity increased to 11.2 bcm in 2026, with an expected contribution of over EUR85 million for the year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
