Iren S.p.A. (IRE) AI Stock Analysis

• Market Cap: €3.26B
• Dividend Yield: 5.04%
• Average Volume (3M): 907.90K
• Price to Earnings (P/E): 11.1
• Beta (1Y): 0.39
• Revenue Growth: 10.48%
• EPS Growth: 9.06%
• Country: IT
• Employees: 11,133
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.03
• Shares Outstanding: 1,300,931,400
• 10 Day Avg. Volume: 933,720
• 30 Day Avg. Volume: 907,905
• PEG Ratio: 1.84
• Price to Book (P/B): 0.86
• Price to Sales (P/S): 0.41
• P/FCF Ratio: 9.74
• 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: €2.90
• Price Target Upside: 14.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €2.50 ▼(-1.57% Downside)

Iren S.p.A.'s overall stock score is driven by its stable financial performance and attractive valuation. However, bearish technical indicators and challenges in cash flow generation and leverage management weigh on the score.

Positive Factors

Profitability Margins

Strong profitability margins indicate effective cost management and operational efficiency, supporting long-term financial stability.

Renewable Energy Investments

Investments in renewable energy align with regulatory trends and consumer demand, enhancing long-term revenue potential and sustainability.

Strategic Partnerships

Collaborations with local governments and private entities strengthen market position and provide stable revenue streams, supporting growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Cash Flow Challenges

Declining free cash flow may constrain liquidity and limit the company's ability to fund operations and strategic initiatives.

Revenue Growth Challenges

Declining revenue growth could indicate market saturation or competitive pressures, affecting long-term expansion and profitability.

Iren S.p.A. Business Overview & Revenue Model

Company Description

Iren SpA, together with its subsidiaries, operates as a multi-utility company in Italy. It operates through Networks, Waste Management, Energy, Market, and Other Services segments. The company produces and distributes electricity primarily from hydroelectric, thermoelectric, cogeneration, and other renewables, as well as distributes natural gas. It distributes electrical energy through 7,849 kilometers of medium and low voltage networks to approximately 725,000 connected users; and natural gas through its network of approximately 8,115 kilometers of high, medium, and low-pressure pipes to approximately 741,000 customers. The company also operates integrated water cycle, which includes 20,088 kilometers of pipeline networks that serve 2.8 million residents; 11,291 kilometers of sewerage networks; and operates treatment plants. In addition, it is involved in the provision of services related to street lighting systems, traffic light systems, heating systems, and electrical and special systems; collection and disposal of waste; snow clearing services; and analysis laboratories, telecommunications, and other services. It operates 23 hydroelectric plants, 7 thermoelectric cogeneration systems, and 1 thermoelectric plant, as well as 95 photovoltaic production plants with an installed capacity of 18 MW. Iren SpA is based in Reggio Emilia, Italy.

How the Company Makes Money

Iren S.p.A. generates revenue through several key streams: the sale of electricity and natural gas to residential, commercial, and industrial customers; fees collected for water supply and wastewater treatment services; and income from waste management operations, including collection, recycling, and disposal services. Additionally, the company benefits from investments in renewable energy projects which contribute to its earnings through the sale of green energy. Strategic partnerships with local governments and private entities in infrastructure projects also enhance its revenue potential, as does the company's commitment to energy efficiency and sustainability initiatives, which align with increasing regulatory and consumer demand for environmentally-friendly solutions.

Iren S.p.A. Financial Statement Overview

Summary

Iren S.p.A. shows strong revenue growth and operational efficiency with improved margins and a healthy return on equity. However, challenges exist in cash flow management and a relatively high debt-to-equity ratio.

Income Statement

Iren S.p.A. demonstrates a solid income statement with a consistent increase in revenue, marked by a 4.15% growth in the TTM period. The gross profit margin has improved to 38.47%, indicating efficient cost management. However, the net profit margin slightly decreased to 4.37%, suggesting some pressure on profitability. The EBIT and EBITDA margins are stable, reflecting operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.56 in the TTM period, indicating a balanced leverage position. The return on equity is healthy at 9.43%, reflecting effective use of equity. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing.

Cash Flow

Cash flow analysis reveals challenges with a significant decline in free cash flow growth by 43.71% in the TTM period. The operating cash flow to net income ratio is 0.37, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio is lower, suggesting potential cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.55B	5.95B	6.41B	7.75B	4.91B	3.68B
Gross Profit	3.50B	1.92B	1.86B	1.56B	1.54B	1.40B
EBITDA	1.30B	1.23B	1.09B	982.53M	955.52M	870.62M
Net Income	294.96M	268.47M	254.84M	226.02M	303.17M	239.17M
Balance Sheet
Total Assets	11.73B	12.21B	11.69B	11.72B	10.31B	9.55B
Cash, Cash Equivalents and Short-Term Investments	204.21M	326.57M	436.13M	788.40M	606.89M	890.17M
Total Debt	4.62B	614.15M	653.91M	106.62M	3.94B	3.98B
Total Liabilities	8.10B	8.87B	8.44B	8.53B	7.36B	6.79B
Stockholders Equity	3.38B	2.88B	2.81B	2.75B	2.57B	2.39B
Cash Flow
Free Cash Flow	142.28M	252.96M	-186.31M	185.49M	192.70M	136.36M
Operating Cash Flow	1.03B	1.08B	680.29M	1.08B	950.47M	821.51M
Investing Cash Flow	-852.05M	-901.04M	-886.62M	-1.14B	-811.79M	-791.22M
Financing Cash Flow	-585.68M	-291.70M	-145.95M	240.56M	-421.96M	514.00M

Iren S.p.A. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IT:IRE, the sentiment is Neutral. The current price of 2.54 is below the 20-day moving average (MA) of 2.57, below the 50-day MA of 2.60, and above the 200-day MA of 2.50, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 47.05 is Neutral, neither overbought nor oversold. The STOCH value of 63.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IT:IRE.

Iren S.p.A. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ENEL	67 Neutral	€88.75B	13.90	23.22%	5.07%	-3.10%	26.28%
IG	67 Neutral	€9.47B	16.82	―	4.09%	-3.34%	8.88%
A2A	66 Neutral	€7.20B	9.83	13.23%	4.36%	8.61%	-22.69%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
ACE	64 Neutral	€4.69B	10.15	14.57%	4.31%	-26.96%	25.00%
HER	62 Neutral	€5.88B	11.53	13.77%	3.73%	15.98%	19.01%
IRE	61 Neutral	€3.26B	11.06	9.51%	5.04%	10.48%	9.06%

Iren S.p.A. Corporate Events

Iren S.p.A. Announces 2026 Corporate Events Calendar

Iren S.p.A. has announced its corporate events calendar for 2026, detailing key dates for financial disclosures and shareholder meetings. The schedule includes meetings for financial statement approvals and shareholder discussions on profit allocation and remuneration policies. The announcement highlights the company’s compliance with Borsa Italiana S.p.A. regulations and plans for conference calls with analysts and investors, underscoring transparency and engagement with stakeholders.

Iren S.p.A. Unveils Ambitious 2025-2030 Industrial Plan with Focus on Sustainable Growth

Iren S.p.A. has approved its industrial plan for 2025-2030, emphasizing growth in regulated businesses with a €6.4 billion investment strategy. The plan aims to achieve an EBITDA of €1.6 billion and a net profit of €400 million by 2030, while maintaining a sustainable dividend policy. The strategy includes organic growth, synergies, and external acquisitions, with a focus on ecological transition and sustainable development. This approach is expected to enhance operational efficiency and stakeholder value, supporting the company’s long-term vision of reducing environmental impact and fostering innovation.

Iren S.p.A. Reports Strong Financial Growth and Strategic Investments

Iren S.p.A. reported strong financial results for the period ending September 30, 2025, with a 9% increase in EBITDA and a 12% rise in net profit. The company’s growth is attributed to the consolidation of Egea Holding, organic growth in regulated businesses, and a synergy plan enhancing operational efficiency. Investments exceeded 1.1 billion euros, focusing on technical advancements and sustainability, with significant contributions from energy revenues and the integration of Egea Holding. The company anticipates continued growth, supported by its strategic investment in sustainable projects and infrastructure.

Iren S.p.A. Announces Review of Updated 2030 Industrial Plan

Iren S.p.A. has announced that its updated Industrial Plan to 2030 is set to be reviewed and potentially approved by the Board of Directors on November 13, 2025. This update could significantly influence the company’s strategic direction and operational focus over the next five years, impacting its market positioning and stakeholder interests.

Fitch Upgrades Iren’s Debt Rating Following Italy’s Sovereign Upgrade

Fitch Ratings has upgraded Iren S.p.A.’s senior unsecured debt rating from ‘BBB’ to ‘BBB+’ and its hybrid bonds from ‘BB+’ to ‘BBB-‘. This upgrade follows the recent improvement in Italy’s Long-Term Issuer Default Rating, reflecting reduced risks associated with Iren’s debt instruments due to its substantial earnings from regulated activities.

Fitch Upgrades Iren’s Debt Ratings Following Italy’s Sovereign Upgrade

Fitch Ratings has upgraded Iren S.p.A.’s senior unsecured debt rating from ‘BBB’ to ‘BBB+’ and its hybrid bonds to ‘BBB-‘, following an improvement in Italy’s Long-Term Issuer Default Rating. This upgrade reflects a reduced risk on Iren’s debt instruments, particularly given the company’s strong presence in regulated utility sectors, enhancing its investment appeal.