A2A SpA (A2A) AI Stock Analysis

• Market Cap: €7.96B
• Dividend Yield: 4.37%
• Average Volume (3M): 7.80M
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.58
• Revenue Growth: 8.61%
• EPS Growth: -22.69%
• Country: IT
• Employees: 14,777
• Sector: General
• Sector Strength: N/A
• Industry: Diversified Utilities
• EPS (TTM): 0.05
• Shares Outstanding: 3,132,905,300
• 10 Day Avg. Volume: 7,866,198
• 30 Day Avg. Volume: 7,800,187
• PEG Ratio: 0.23
• Price to Book (P/B): 1.24
• Price to Sales (P/S): 0.54
• P/FCF Ratio: 16.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €3.05
• Price Target Upside: 20.55% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: €2.50 ▼(-1.19% Downside)

A2A SpA's overall stock score is driven by strong financial performance, particularly in revenue growth and gross profit margins. However, technical analysis indicates bearish momentum, which could pose short-term risks. The stock's attractive valuation with a low P/E ratio and high dividend yield provides a positive outlook for value investors.

Positive Factors

Strong revenue growth (TTM)

An 85.5% TTM revenue increase signals durable demand across A2A’s diversified utility services (energy, water, environmental). Sustained top-line expansion enhances capacity to invest in renewables, grid upgrades and long-term contracts, supporting stable cash generation over months.

Improved gross profit margin

A rise in gross margin to 17.7% reflects better cost control or higher-margin mix in core services. This improvement is structural for profitability, increasing resilience to commodity swings and enabling reinvestment in efficiency and sustainable projects that support medium-term margin sustainability.

Reduced leverage

A lowering of debt-to-equity to 1.26 indicates modest deleveraging and a more balanced capital structure. Better leverage improves financial flexibility for capex and renewables spending, reduces refinancing vulnerability, and supports credit resilience across a multi-month horizon.

Negative Factors

Free cash flow collapse

A >100% decline in free cash flow growth denotes weak conversion of earnings to discretionary cash. This undermines ability to fund dividends, organic growth or investments without higher debt, creating structural pressure on liquidity and limiting strategic flexibility over the medium term.

Net and operating margin deterioration

Compression in net, EBIT and EBITDA margins points to rising costs or lower operational efficiency. If persistent, margin deterioration erodes cash flow generation and returns on invested capital, making it harder to finance transition investments and weakening long-term profitability.

Earnings per share contraction

A ~22.7% decline in EPS signals meaningful deterioration in per-share profitability, which may reflect margin pressure, higher financing costs or one-offs. Sustained EPS weakness reduces retained earnings and the company’s ability to self-fund capex or maintain dividend levels over months.

A2A SpA Business Overview & Revenue Model

Company Description

A2A S.p.A. engages in the production, sale, and distribution of gas and electricity, and district heating in Italy and internationally. The company generates electricity through hydroelectric, thermoelectric, photovoltaic, cogeneration, waste treatment, and wind plants with a total installed capacity of 8.9 GW; and purchases and sells electricity, gas, fuels, and environmental certificates. It also engages in the production and sale of heat produced through district heating networks; waste management activities, including collection and street sweeping, treatment, disposal, and recovery of materials and energy; and the construction and management of integrated waste disposal plants and systems. In addition, the company offers integrated water cycle management services; and technical consultancy services relating to energy efficiency certificates. Further, it is involved in the management of public lighting and traffic regulation systems, votive lamps, street lights, and water purification and sewer activities, as well as offers energy efficiency and electric mobility services. Additionally, the company provides telecommunication services, including management of fixed and mobile phone lines, and data transmission lines; management and development of infrastructures to support communications; and implementation and management of video surveillance and access control systems, as well as designs solutions and applications for creating new models of cities and territories. A2A S.p.A. is headquartered in Brescia, Italy.

How the Company Makes Money

A2A generates revenue primarily through its diverse utility services. Key revenue streams include electricity generation and sales, natural gas distribution, and water services. The company earns money by selling electricity to residential, commercial, and industrial customers, as well as through regulated gas supply contracts. A2A's environmental services also contribute significantly to its earnings, as it manages waste collection, treatment, and recycling for municipalities and private clients. Additionally, A2A benefits from government incentives and subsidies aimed at promoting renewable energy and sustainability projects. Strategic partnerships with local governments and other businesses enhance its service offerings and expand its market reach, further bolstering its revenue potential.

A2A SpA Financial Statement Overview

Summary

A2A SpA demonstrates strong revenue growth and improved gross profit margins, indicating positive business momentum. However, challenges remain in maintaining net profit margins and operational profitability. The balance sheet reflects moderate leverage and stable equity, while cash flow management requires attention due to negative free cash flow growth.

Income Statement

A2A SpA shows strong revenue growth in the TTM period with a significant increase of 85.5%. The gross profit margin improved to 17.7% from the previous year's 12.5%, indicating better cost management. However, the net profit margin decreased slightly to 5.96% from 6.87%, suggesting increased expenses or lower operational efficiency. The EBIT and EBITDA margins also saw a decline, reflecting potential challenges in maintaining operational profitability.

Balance Sheet

The company's debt-to-equity ratio improved slightly to 1.26 from 1.33, indicating a reduction in leverage. Return on equity decreased to 14.66% from 15.87%, which may suggest a slight decline in profitability relative to shareholder equity. The equity ratio remains stable, reflecting a balanced capital structure. Overall, the balance sheet shows moderate stability with manageable leverage.

Cash Flow

Operating cash flow increased, but free cash flow growth was negative at -110.2%, indicating potential cash flow management issues. The operating cash flow to net income ratio is stable, suggesting consistent cash generation relative to net income. However, the free cash flow to net income ratio is relatively low, highlighting potential challenges in converting earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	13.68B	12.57B	14.63B	22.95B	11.35B	6.67B
Gross Profit	2.39B	1.58B	2.90B	2.44B	2.26B	1.98B
EBITDA	2.13B	2.31B	1.85B	1.58B	1.33B	1.10B
Net Income	732.00M	864.00M	659.00M	401.00M	504.00M	364.00M
Balance Sheet
Total Assets	19.59B	19.89B	18.80B	21.37B	18.01B	12.23B
Cash, Cash Equivalents and Short-Term Investments	1.40B	1.55B	1.47B	2.60B	973.00M	1.02B
Total Debt	6.57B	7.27B	6.35B	6.89B	5.07B	4.50B
Total Liabilities	13.34B	13.89B	14.00B	16.90B	13.71B	8.11B
Stockholders Equity	5.68B	5.45B	4.24B	3.90B	3.76B	3.54B
Cash Flow
Free Cash Flow	628.00M	408.00M	-336.00M	20.00M	61.00M	-141.00M
Operating Cash Flow	1.78B	1.46B	1.04B	1.26B	1.14B	597.00M
Investing Cash Flow	-2.49B	-2.81B	-1.36B	-1.14B	-1.59B	-802.00M
Financing Cash Flow	51.00M	1.27B	-932.00M	1.20B	40.00M	527.00M

A2A SpA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.53
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:A2A, the sentiment is Positive. The current price of 2.53 is above the 20-day moving average (MA) of 2.45, above the 50-day MA of 2.37, and above the 200-day MA of 2.27, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 76.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IT:A2A.

A2A SpA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENEL	67 Neutral	€94.54B	14.81	23.22%	5.05%	-3.10%	26.28%
A2A	66 Neutral	€7.96B	10.87	13.23%	4.37%	8.61%	-22.69%
ACE	64 Neutral	€4.99B	10.82	14.57%	4.33%	-26.96%	25.00%
HER	62 Neutral	€6.09B	11.95	13.77%	3.76%	15.98%	19.01%
IRE	61 Neutral	€3.46B	11.74	9.51%	5.06%	10.48%	9.06%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

A2A SpA Corporate Events

A2A Buys Back 850,000 Shares Under Ongoing Treasury Share Programme

A2A has continued its share buyback programme authorised by shareholders, repurchasing 850,000 treasury shares on Euronext Milan between 26 and 30 January 2026 at an average price of €2.518 per share, for a total outlay of about €2.14 million. Including these latest transactions, the company now holds 6,457,087 treasury shares, equal to 0.2061% of its share capital, underscoring an ongoing capital management strategy that may support the stock’s liquidity and provide flexibility for future corporate actions, potentially affecting existing shareholders’ ownership structure over time.

The most recent analyst rating on (IT:A2A) stock is a Hold with a EUR2.50 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.

A2A Publishes Governance Guidance on Future Board Structure for 2026-2028

A2A S.p.A. has published a guidance opinion for its shareholders concerning the optimal size and composition of the Board of Directors for the 2026-2028 term, ahead of the shareholders’ meeting scheduled for 28 April 2026. By making this document publicly available on its website and through an authorised storage mechanism, the company aims to support an informed nomination process and ensure that the future board structure is aligned with governance best practices and the group’s strategic and regulatory needs, which is relevant for investors and other stakeholders monitoring the utility’s long-term direction and oversight.

The most recent analyst rating on (IT:A2A) stock is a Hold with a EUR2.50 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.

A2A Completes Share Buyback Program, Strengthening Market Position

A2A SpA concluded its share buyback program, purchasing a total of 2,142,796 shares at an average price of 2.3315 euros per share, amounting to approximately 4.996 million euros. This strategic move enhances A2A’s financial flexibility and shareholder value, positioning the company favorably within the market by holding 0.1324% of its share capital in treasury shares.

The most recent analyst rating on (IT:A2A) stock is a Buy with a EUR3.20 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.

A2A S.p.A. Accelerates Ecological Transition with Strong Financial Results and New Ventures

A2A S.p.A. reported solid financial results for the first nine months of 2025, with significant investments in ecological transition and sustainability. The company launched A2A Life Ventures to drive innovation and signed a renewable energy agreement to expand its green energy portfolio. Despite a slight reduction in EBITDA due to hydroelectric production normalization, A2A’s strategic initiatives in renewable energy and open innovation position it as a leader in sustainable finance and ecological transition.

The most recent analyst rating on (IT:A2A) stock is a Hold with a EUR3.00 price target. To see the full list of analyst forecasts on A2A SpA stock, see the IT:A2A Stock Forecast page.