Terna (TEZNY)
OTHER OTC:TEZNY
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Terna
(OTC:TEZNY)
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Rating:60Neutral
Price Target:
$37.00
â–²(12.43% Upside)
Action:Reiterated
Date:06/06/26
The score is primarily held back by weak cash flow quality (recurring negative free cash flow) despite strong profitability and revenue growth. Technical indicators are neutral-to-soft, adding limited near-term support. Valuation is a relative positive due to the ~4% dividend yield and a moderate P/E.
Positive Factors
Regulated transmission business model
Terna’s core revenues derive from tariff-based, regulated returns linked to the regulated asset base (RAB). That model creates stable, predictable cash inflows and earnings less exposed to commodity swings, supporting multi-month visibility for capital planning and steady regulated returns.
Negative Factors
Persistent negative free cash flow
Repeated negative free cash flow despite stronger operating cash implies capex or working‑capital needs outpacing core cash generation. Over a 2–6 month horizon this constrains balance sheet flexibility, may require external funding, and limits organic cash available for discretionary uses.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated transmission business model
Terna’s core revenues derive from tariff-based, regulated returns linked to the regulated asset base (RAB). That model creates stable, predictable cash inflows and earnings less exposed to commodity swings, supporting multi-month visibility for capital planning and steady regulated returns.
Read all positive factors
Terna (TEZNY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.82B
Dividend Yield3.78%
Average Volume (3M)1.44K
Price to Earnings (P/E)18.8
Beta (1Y)>-0.01
Revenue Growth14.28%
EPS Growth9.07%
CountryUS
Employees6,376
SectorUtilities
Sector Strength65
IndustryRegulated Electric
Share Statistics
EPS (TTM)1.26
Shares Outstanding669,997,300
10 Day Avg. Volume748
30 Day Avg. Volume1,441
Financial Highlights & Ratios
PEG Ratio0.00
Price to Book (P/B)2.24
Price to Sales (P/S)4.58
P/FCF Ratio-57.05
Enterprise Value/Market Cap1.35
Enterprise Value/Revenue10.32
Enterprise Value/Gross Profit17.86
Enterprise Value/Ebitda14.87
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Terna Business Overview & Revenue Model
Company Description
Terna - Rete Elettrica Nazionale Società per Azioni, an Italian entity headquartered in Rome since its establishment in 1999, plays a pivotal role in electricity transmission and dispatching. Its operations extend across Italy, other Euro-area nat...
How the Company Makes Money
Terna primarily makes money through regulated electricity transmission and system operation activities. Its largest revenue stream comes from tariffs and regulated returns associated with (1) operating and maintaining the national high-voltage tra...
Terna Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Positive
The earnings call presented a generally positive outlook with strong financial performance, significant progress in infrastructure projects, and high procurement coverage. However, there are concerns about flat renewable contributions and increased net debt.Positive Updates
Significant Infrastructure Progress
Terna made considerable progress in grid development projects such as the Tyrrhenian Link, Central Link, and Sardinian Link, which include innovative designs and advanced technology for sustainable growth.
Negative Updates
Stagnant Renewable Energy Contribution
Renewable sources covered about 43% of national demand, remaining in line with the previous year, with no significant increase in renewable's share of total production.
Read all updates
Q3-2025 Updates
Positive
Negative
Significant Infrastructure Progress
Terna made considerable progress in grid development projects such as the Tyrrhenian Link, Central Link, and Sardinian Link, which include innovative designs and advanced technology for sustainable growth.
Read all positive updates
Company Guidance
During the call, Terna provided guidance for the full year 2025, confirming expectations of achieving revenues of EUR 4.03 billion, EBITDA of EUR 2.7 billion, and a net profit of EUR 1.08 billion. The company set a target of approximately EUR 3.4 billion in investments for the year. Despite already achieving around 80% of the full-year net income guidance in the first nine months, the guidance remains unchanged due to pending visibility on certain elements, such as dispatching incentives. The company reported a 9% increase in group revenues and a 7% rise in EBITDA for the first nine months of 2025, with group net income reaching EUR 853 million, a 5% growth compared to the same period last year. Terna's net debt stood at EUR 11.7 billion as of September 2025, with a significant portion of the 2024-'28 CapEx plan already secured with procurement contracts. The strong results were accompanied by significant progress in grid development projects like the Tyrrhenian Link and advancements in energy storage capacity, reflecting Terna's commitment to infrastructure and energy transition initiatives.Terna Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
41
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.79B | 3.65B | 3.15B | 2.92B | 2.57B |
| Gross Profit | 1.82B | 3.34B | 2.58B | 2.42B | 2.16B |
| EBITDA | 2.56B | 2.57B | 2.11B | 2.04B | 1.83B |
| Net Income | 1.07B | 1.06B | 885.40M | 857.00M | 789.40M |
Balance Sheet | |||||
| Total Assets | 35.24B | 27.19B | 23.47B | 22.83B | 22.39B |
| Cash, Cash Equivalents and Short-Term Investments | 3.01B | 2.76B | 1.74B | 2.41B | 2.55B |
| Total Debt | 11.67B | 13.86B | 12.98B | 10.81B | 12.42B |
| Total Liabilities | 28.15B | 19.64B | 17.10B | 16.63B | 17.60B |
| Stockholders Equity | 7.77B | 7.52B | 6.32B | 5.15B | 4.68B |
Cash Flow | |||||
| Free Cash Flow | -304.97M | -1.16B | -963.90M | 831.40M | -511.90M |
| Operating Cash Flow | 2.52B | 1.47B | 1.08B | 2.32B | 832.30M |
| Investing Cash Flow | -3.68B | -2.40B | -2.33B | -1.86B | -863.30M |
| Financing Cash Flow | 700.80M | 1.87B | 464.30M | 92.50M | -1.05B |
Terna Technical Analysis
Negative
32.91
Price Trends
35.24
Negative
34.73
Positive
32.85
Positive
Market Momentum
0.16
Negative
47.04
Neutral
54.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEZNY, the sentiment is Negative. The current price of 32.91 is below the 20-day moving average (MA) of 34.89, below the 50-day MA of 35.24, and above the 200-day MA of 32.85, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 47.04 is Neutral, neither overbought nor oversold. The STOCH value of 54.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TEZNY.
Terna Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
64 Neutral | $15.94B | 2.93 | 18.58% | 0.29% | 1.27% | 64.03% | |
60 Neutral | $23.82B | 18.82 | 14.55% | 3.78% | 14.28% | 9.07% | |
60 Neutral | $26.17B | 14.97 | 10.86% | 4.54% | 9.83% | 101.90% | |
60 Neutral | $26.62B | 21.82 | 8.32% | 3.13% | 7.52% | 21.81% | |
58 Neutral | $22.67B | 19.92 | 12.35% | 3.10% | 13.31% | 6.97% | |
58 Neutral | $27.66B | 7.48 | 21.54% | 5.68% | 13.14% | 30.35% |
* Utilities Sector Average
TEZNY
Terna
34.80
5.61
19.24%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.