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1. Company Snapshot

1.a. Company Description

ACEA S.p.A., together with its subsidiaries, operates as a multi-utility company in Italy.The company operates through Environment, Commercial and Trading, Water, Energy Infrastructure, Engineering and Services, and Abroad segments.The Environment segment primarily engages in the treatment of waste and associated disposal.


This segment also manages waste energy facility and composting plants in the Lazio, Umbria, and Tuscany regions; operates plastics recycling plant for sorting and recycling plastic packaging in the Piedmont and Valle d'Aosta regions; and produces energy from waste.The Commercial and Trading segment sells and supplies electrical energy and natural gas.The Water segment provides drinking water distribution services comprising collection, discharge, retail, and wholesale.


This segment supplies water to approximately 9 million customers; and manages integrated water service in Rome and Frosinone, as well as in other parts of Lazio, Tuscany, Umbria, Molise, and Campania.The Energy Infrastructure segment runs hydroelectric, photovoltaic, thermoelectric plants in Lazio, Umbria, and Abruzzo; manages public and artistic lighting; and distributes approximately 10 Twh of electricity.The Engineering and Services segment research, designs, constructs, and manages integrated water systems.


The Abroad segment manages the water activity in Latin America.ACEA S.p.A. was founded in 1909 and is headquartered in Rome, Italy.

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1.b. Last Insights on ACE

ACEA S.p.A.'s recent performance was bolstered by the EU's "action plan" for the automotive sector, which aims to bolster the competitive position of the EU's auto industry through a transition to e-mobility. This strategic initiative is expected to drive growth in the electric vehicle (EV) market, a key area of focus for ACEA. Furthermore, the company's appeal for immediate grid upgrades to facilitate the transition to heavy-duty EVs is well-timed, given the EU's push to reduce carbon emissions in the transport sector.

1.c. Company Highlights

2. ACEA Group's 9M 2025 Earnings: Strong Growth Across Segments

ACEA Group reported a robust financial performance for the first 9 months of 2025, with pro forma EBITDA reaching EUR 1.84 billion, an 8% increase compared to the same period last year. The growth was driven primarily by the Water Italy business, grids, and public lighting, as well as generation. The net profit for the period was EUR 415 million, a 46% increase year-on-year, largely due to the capital gain from the disposal of the high-voltage network. The recurrent net profit grew by 8%, following the positive trend at the operating level.

Publication Date: Nov -15

📋 Highlights

Segmental Performance

The Water business continued to be a key driver of growth, benefiting from tariff adjustments and increased operating activities. The grids and public lighting segment also contributed positively, driven by the Regulatory Asset Base (RAB) and growth in generation results. As the CFO, Francesco Ragni, highlighted, the company's focus on its core businesses is expected to drive further growth. The company's CapEx, net of grants, stood at EUR 843 million, with a significant portion related to the Water business and environment sector.

Guidance and Outlook

ACEA Group has maintained its guidance for 2025, expecting a growth in pro forma EBITDA between 8% to 10% compared to 2024. The company also expects a stable net working capital trend in the last quarter of 2025. Looking ahead to 2026, the company anticipates tariffs in the Water business to remain in line with 2025 levels, and a stable regulated return in the Energy business. Analysts estimate next year's revenue growth at 4.2%.

Valuation and Metrics

ACEA Group's current valuation metrics indicate a P/E Ratio of 11.77, a P/B Ratio of 1.8, and an EV/EBITDA of 6.9. The Net Debt / EBITDA ratio stands at 3.74, reflecting the company's financial leverage. With a Dividend Yield of 4.44%, the stock presents an attractive income opportunity. The company's ROIC is 5.11%, and ROE is 15.29%, indicating a relatively efficient use of capital. As the company updates its business plan to reflect the stronger growth experienced in the first 9 months of 2025, investors will be watching for further guidance on its strategic priorities and financial targets.

3. NewsRoom

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ACEA SpA (LTS:0MHD) Q3 2025 Earnings Call Highlights: Strong Profit Growth and Strategic ...

Nov -18

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Assessing ACEA (BIT:ACE) Valuation as Growth Pauses and Recent Share Price Dip Raises Investor Interest

Sep -20

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Societe Generale: shares & voting rights as of 31 August 2025

Sep -09

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Vaisala Corporation: Share Repurchase 9.9.2025

Sep -09

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Assessing Acciona (BME:ANA)'s Valuation After Recent Subtle Moves

Sep -09

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Deutsche Bank (XTRA:DBK): Assessing Valuation After a Period of Quiet Share Price Momentum

Sep -09

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Is Vaisala (HLSE:VAIAS) Undervalued? A Fresh Look at Its Current Valuation

Sep -09

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Has Evotec’s 29.5% Price Drop Created a New Opportunity for 2025?

Sep -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.15%)

6. Segments

Commercial

Expected Growth: 2.5%

ACEA S.p.A.'s commercial segment growth of 2.5% is driven by increasing demand for water and energy services, expansion into new geographic markets, and investments in digitalization and innovation. Additionally, the company's focus on sustainability and energy efficiency, as well as its ability to adapt to changing regulatory environments, contribute to its growth momentum.

Water

Expected Growth: 1.8%

ACEA S.p.A.'s water segment growth of 1.8% is driven by increasing water demand from industrial and agricultural activities, coupled with investments in water infrastructure and efficiency measures. Additionally, the Italian government's focus on environmental sustainability and water conservation initiatives contribute to the segment's growth.

Consolidation Adjustments

Expected Growth: 0.5%

Consolidation adjustments from ACEA S.p.A. with 0.5% growth driven by increased operational efficiency, cost savings from synergies, and improved financial discipline, offset by moderate revenue growth and stable margins.

Networks & Smart Cities

Expected Growth: 3.2%

The 3.2% growth in Networks & Smart Cities from ACEA S.p.A. is driven by increasing demand for smart grid infrastructure, rising adoption of electric vehicles, and growing need for efficient energy management. Additionally, government initiatives and investments in smart city projects, as well as the integration of IoT and AI technologies, are contributing to this growth.

Environment

Expected Growth: 2.8%

ACEA S.p.A.'s 2.8% growth in the Environment segment is driven by increasing demand for sustainable waste management, expansion of renewable energy sources, and stringent regulations promoting environmental protection. Additionally, investments in green infrastructure, growing awareness of climate change, and government incentives for eco-friendly practices contribute to this growth.

Corporate

Expected Growth: 1.2%

ACEA S.p.A.'s corporate segment growth of 1.2% is driven by increasing demand for water and energy services, cost savings from operational efficiencies, and strategic investments in digitalization and innovation. Additionally, the company's focus on sustainability and environmental initiatives has led to new business opportunities and revenue streams.

Production

Expected Growth: 2.2%

ACEA S.p.A.'s 2.2% growth is driven by increasing demand for water and electricity services, investments in renewable energy, and efficient cost management. Additionally, the company's focus on innovation and digitalization has improved operational efficiency, contributing to the growth.

Engineering and Infrastracture Projects

Expected Growth: 3.5%

ACEA S.p.A.'s 3.5% growth in Engineering and Infrastructure Projects is driven by increasing investments in renewable energy, water management, and transportation systems. Growing urbanization, government initiatives, and rising demand for sustainable infrastructure also contribute to this growth. Additionally, ACEA's expertise in designing and managing complex projects, as well as its strong relationships with public and private clients, support its expansion in this segment.

Water (Overseas)

Expected Growth: 2.1%

ACEA S.p.A.'s Water (Overseas) segment growth of 2.1% is driven by increasing demand for water treatment and management services in emerging markets, coupled with strategic acquisitions and partnerships. Additionally, investments in digitalization and infrastructure development are expected to boost efficiency and revenue growth.

7. Detailed Products

Electric Mobility

ACEA S.p.A. offers a range of electric mobility solutions, including electric vehicle charging infrastructure and services, to support the transition to sustainable transportation.

Energy Efficiency

ACEA S.p.A. provides energy efficiency solutions, including energy audits, energy management systems, and energy-efficient technologies, to help reduce energy consumption and costs.

Water Management

ACEA S.p.A. offers water management solutions, including water treatment, distribution, and wastewater management, to ensure efficient and sustainable water use.

Waste Management

ACEA S.p.A. provides waste management solutions, including waste collection, recycling, and disposal, to minimize waste and promote sustainable waste management practices.

Environmental Services

ACEA S.p.A. offers environmental services, including environmental monitoring, remediation, and consulting, to support sustainable development and environmental protection.

8. ACEA S.p.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ACEA S.p.A. is medium due to the presence of alternative energy sources and transportation modes.

Bargaining Power Of Customers

The bargaining power of customers for ACEA S.p.A. is low due to the lack of negotiating power and the company's dominant market position.

Bargaining Power Of Suppliers

The bargaining power of suppliers for ACEA S.p.A. is medium due to the presence of multiple suppliers and the company's ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants for ACEA S.p.A. is low due to the high barriers to entry and the company's established market position.

Intensity Of Rivalry

The intensity of rivalry for ACEA S.p.A. is high due to the presence of multiple competitors and the company's need to maintain market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 70.25%
Debt Cost 3.99%
Equity Weight 29.75%
Equity Cost 8.17%
WACC 5.24%
Leverage 236.19%

11. Quality Control: ACEA S.p.A. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Iren

A-Score: 6.7/10

Value: 7.1

Growth: 5.6

Quality: 3.4

Yield: 7.5

Momentum: 8.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
ACEA

A-Score: 6.6/10

Value: 5.8

Growth: 5.6

Quality: 4.9

Yield: 8.1

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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A2A

A-Score: 6.6/10

Value: 7.6

Growth: 6.4

Quality: 3.8

Yield: 7.5

Momentum: 5.0

Volatility: 9.0

1-Year Total Return ->

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Hera

A-Score: 6.5/10

Value: 6.8

Growth: 5.7

Quality: 3.9

Yield: 6.9

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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EVN

A-Score: 5.9/10

Value: 6.6

Growth: 6.6

Quality: 5.6

Yield: 5.6

Momentum: 2.5

Volatility: 8.7

1-Year Total Return ->

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EDP

A-Score: 5.9/10

Value: 6.5

Growth: 3.4

Quality: 3.4

Yield: 7.5

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

22.2$

Current Price

22.2$

Potential

-0.00%

Expected Cash-Flows