IREN shares surge on earnings beat, guidance upgrade

Shares of Italian utility Iren SpA surged on Wednesday after the company reported first-quarter earnings that exceeded market expectations and upgraded its full-year guidance.

Iren, which operates in electricity, gas, and district heating, said net profit rose to €128 million in the first three months of 2025, up from €102 million a year earlier. Revenue increased 8.7% to €2.1 billion, driven by higher energy prices and volume growth in its core markets.

The company also raised its 2025 earnings forecast, now projecting net profit in a range of €480 million to €520 million, compared with a prior estimate of €450 million to €490 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were reported at €412 million, up 12% year-over-year.

Analysts at Intesa Sanpaolo noted that Iren's performance reflected "strong operational execution" and "beneficial market conditions," particularly in Italy's regulated energy sector. The upgrade follows a series of cost-control measures and investments in renewable energy assets.

The stock climbed as much as 6.2% in early Milan trading, outpacing the broader FTSE MIB index, which was up 1.1%. At 09:45 GMT, shares traded 5.8% higher at €4.25, valuing the company at €3.8 billion.

Iren's dividend policy remains unchanged, with a payout ratio of 60% of net profit targeted for 2025. The company plans to maintain its focus on grid modernization and decarbonization initiatives, which it expects will support long-term growth.

The earnings beat comes amid a broader rally in European utilities, as investors seek defensive exposure to energy transition themes amid volatile commodity markets.