ERG SpA (MIL:ERG)

Q2 2026 ERG SpA Earnings Call Transcript

Jul 31, 2026 / 12:30 PM GMT

Release Date Price: €22.02 (+3.57%)

Transcript

Key Points

Positve

ERG SpA (FRA:ER9) reported solid first-half 2026 results with EBITDA of EUR295 million, up 9% year-on-year, despite lower wind speeds.
The company successfully integrated the acquired 73 MW UK portfolio and energized the 22 MW ACROG wind farm in Germany, contributing to growth.
ERG SpA (FRA:ER9) has a robust pipeline with 570 MW fully authorized and about 300 MW under construction, including high-return repowering and revamping projects.
Management expressed increased confidence in full-year guidance, citing an empirical analysis suggesting production tends to exceed budget during El Nino periods.
The company is seeing positive demand recovery across all operating countries and higher spot power prices, particularly in the UK, which doubled its EBITDA contribution.
ERG SpA (FRA:ER9) reaffirmed its investment grade rating and renegotiated around EUR500 million in funding, strengthening its financial flexibility.

Negative

ERG SpA (FRA:ER9) continues to face lower-than-historical-average wind speeds, which negatively impacted production volumes in Q2 2026.
The company experienced higher grid curtailments, particularly in Northern Ireland, resulting in an EUR8 million economic impact in the first half with no immediate reimbursement.
Realized prices in Italy were lower year-on-year due to the execution timing of hedging derivatives and reduced incentives, impacting unitary revenues.
Net financial debt increased to EUR1.939 billion, up 3% from year-end 2025, reflecting dividend distributions and higher capital expenditures.
The company faces uncertainty regarding the FERIX and MACSE auction outcomes in Italy, with BESS returns currently at low single-digit levels, potentially requiring alternative route-to-market strategies.
Curtailment risks are growing as renewable penetration increases, and ERG SpA (FRA:ER9) has limited control over TSO dispatch-down orders, especially in markets without reimbursement.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

ERG.MI - ERG SpA
Q2 2026 ERG SpA Earnings Call
Jul 31, 2026 / 12:30PM GMT

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Presentation
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Unidentified_1 [1]
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Good afternoon. This is the Corosco Conference operator. Welcome and thank you for joining the ERG second quarter and first half 2026 results conference call.

As a reminder, all participants are in listen-only mode.

After the presentation, there will be an opportunity to ask questions. Should anyone need assistance during the conference call, they may signal an operator by pressing star and zero on their telephone. At this time, I would like to turn the conference over to Mr. Paolo Meltli, CEO of ERG. Please go ahead, sir.

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Unidentified_2 [2]
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Good afternoon,

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