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olivLaw · European equity research

TERNA - RETE ELETTRICA NAZIONALE SOCIETA' PER AZIONI (IN FORMA ABBREVIATA 'TERNA S.P.A.') TRN.MI

Italy · Euronext Milan · ISIN IT0003242622 · Vertical: Listed companies from Italy

9.86EUR+1.21% · 1 dayClose 05 Nov 2026

Terna runs Italy's national high-voltage transmission grid, balancing supply and demand in real time and connecting new capacity, including renewables. The company sits at the centre of Italy's energy transition, with an investment plan of over 23 billion euros for 2025-2034. In 2024, renewables covered 41.2% of national demand.

At the close of 05 Nov 2026, TERNA - RETE ELETTRICA NAZIONALE SOCIETA' PER AZIONI (IN FORMA ABBREVIATA 'TERNA S.P.A.') (TRN.MI) stock was 9.86 EUR (+1.21% on the day), with market capitalisation 20.0 bn EUR, P/E 18.9 on diluted EPS of 0.52 EUR over the last 12 months, dividend yield 120.89%, beta 0.13, 52-week range 8.71–10.39 EUR.

Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.

Market cap
20.0 bn EUR
shares as of 31 Dec 2024
P/E (TTM)
18.9
Diluted EPS TTM 0.52 · TTM to 31 Dec 2024
E/P (TTM)
5.30%
TTM to 31 Dec 2024
Dividend yield
120.89%
DPS 12m 11.92
Beta (2y)
0.13
Volatility (1y) 17%
52-week range
8.7110.39

Price history

Loading chart…

Technical reading

RSI (14)
70.1
overbought (≥ 70)
Bollinger (20, 2)
9.10 – 9.83
above the upper band · %B 1.05 · band width 7.7%
SMA 50 / 200
9.36 / 9.81
mixed trend
MACD (12, 26, 9)
0.11 / 0.07
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyEURO STOXX 50vs EURO STOXX 50Vertical median
1 month+7.9%−0.6%+8.5 pp—
3 months−1.9%−4.2%+2.3 pp—
6 months−1.1%+4.3%−5.5 pp—
Year to date+8.9%+7.5%+1.4 pp—
1 year+9.5%+9.9%−0.4 pp−6.1%
3 years+33.8%+49.8%−16.0 pp+7.7%
5 years+47.6%+42.8%+4.8 pp—
Max drawdown (1y)
−13.6%
18 Jun 2026 → 14 Sept 2026
Max drawdown (5y)
−27.4%
25 May 2022 → 13 Oct 2022
Compound annual growth (5y)
+8.1%
EURO STOXX 50 +7.4%

Price returns, dividends excluded.

Quarterly results

ESEF annual reports carry no quarters: the results are annual (below).

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 100 percentile of its own 2-quarter history (min 14.6, median 16.1, max 17.6; quarters with earnings only).

Fiscal years

Fiscal year20232024
Revenue3.1 bn3.6 bn
Revenue YoYunavailable+15.8%
Net income885.4 m1.1 bn
Net income YoYunavailable+19.9%
Diluted EPS0.430.52
Diluted EPS YoYunavailable+22.2%
net %28.4%29.4%
Free cash flow-963.9 m-889.2 m

Balance sheet & financial health

Fiscal year 2024 · 31 Dec 2024

Cash
2.3 bn EUR
Financial debt
13.1 bn EUR
Net debt
10.8 bn EUR
Equity
7.5 bn EUR
Total assets
27.2 bn EUR
Debt / equity
1.73x
Current ratio
unavailable
ROE
15.3%
ROA
4.2%
FCF margin
-24.6%

Financial statements (source on every figure)

Revenue and net income (EUR)

Margins

Income statement · EUR

Revenue
2023
3.1 bn
2024
3.6 bn

esef· 07 May 2025verified

Operating income
2023
1.4 bn
2024
1.7 bn

esef· 07 May 2025verified

Interest expense
2023
235.8 m
2024
332.1 m

esef· 07 May 2025verified

Pre-tax income
2023
1.2 bn
2024
1.5 bn

esef· 07 May 2025verified

Income tax
2023
364.3 m
2024
455.0 m

esef· 07 May 2025verified

Net income
2023
885.4 m
2024
1.1 bn

esef· 07 May 2025verified

Diluted EPS
2023
0.43
2024
0.52

esef· 07 May 2025verified

Dividend per share
2023
0.32
2024
11.92

esef· 07 May 2025verified

Balance sheet · EUR

Cash
2023
1.4 bn
2024
2.3 bn

esef· 07 May 2025verified

Inventories
2023
75.0 m
2024
108.2 m

esef· 07 May 2025verified

Property, plant & equipment, net
2023
17.6 bn
2024
19.2 bn

esef· 07 May 2025verified

Goodwill
2023
252.3 m
2024
250.9 m

esef· 07 May 2025verified

Intangibles (excl. goodwill)
2023
614.9 m
2024
731.3 m

esef· 07 May 2025verified

Total assets
2023
23.4 bn
2024
27.2 bn

esef· 07 May 2025verified

Short-term debt
2023
1.2 bn
2024
1.7 bn

esef· 07 May 2025verified

Long-term debt
2023
9.4 bn
2024
11.4 bn

esef· 07 May 2025verified

Current liabilities
2023
6.3 bn
2024
6.9 bn

esef· 07 May 2025verified

Equity
2023
6.3 bn
2024
7.5 bn

esef· 07 May 2025verified

Shares outstanding at year end
2023
2.1 bn
2024
2.0 bn

esef· 07 May 2025derived

Cash flow · EUR

Operating cash flow
2023
1.1 bn
2024
1.5 bn

esef· 07 May 2025verified

Capex
2023
2.0 bn
2024
2.4 bn

esef· 07 May 2025verified

Free cash flow
2023
-963.9 m ≈
2024
-889.2 m ≈

esef· 07 May 2025derived

Investing cash flow
2023
-2.3 bn
2024
-2.4 bn

esef· 07 May 2025verified

Financing cash flow
2023
464.3 m
2024
1.9 bn

esef· 07 May 2025verified

Dividends paid
2023
671.5 m
2024
690.6 m

esef· 07 May 2025verified

Computed indicators

Growth

Revenue growth (YoY)
15.8%
computed by olivLawFY 2024
Revenue CAGR 3Y
unavailable
input data missing
Revenue CAGR 5Y
unavailable
input data missing
EBIT growth (YoY)
23.1%
computed by olivLawFY 2024
Net income growth (YoY)
19.9%
computed by olivLawFY 2024
Net income CAGR 3Y
unavailable
input data missing
Net income CAGR 5Y
unavailable
input data missing
EPS growth (YoY)
22.2%
computed by olivLawFY 2024
EPS CAGR 3Y
unavailable
input data missing
EPS CAGR 5Y
unavailable
input data missing
FCF growth (YoY)
unavailable
the base of the ratio is not positive

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
unavailable
input data missing
EBIT margin
46.4%
computed by olivLawFY 2024
Net margin
29.4%
computed by olivLawFY 2024
FCF margin
-24.6%
computed by olivLawFY 2024

Returns

ROE
15.3%
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
ROA
4.2%
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
ROIC
6.9%
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
ROCE
8.3%
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
Payout ratio (EPS)
2,279.2%
computed by olivLawFY 2024
Payout ratio (FCF)
unavailable
the base of the ratio is not positive

Balance sheet

Net debt
10.8 bn EUR
computed by olivLawbalance sheet at 31 Dec 2024
Net debt / EBITDA
unavailable
input data missing
Debt / equity
1.7x
computed by olivLawbalance sheet at 31 Dec 2024
Interest coverage
5.1x
computed by olivLawFY 2024

Liquidity

Current ratio
unavailable
input data missing
Quick ratio
unavailable
input data missing
Cash ratio
0.3x
computed by olivLawbalance sheet at 31 Dec 2024

Cash

Operating cash flow
1.5 bn EUR
computed by olivLawFY 2024
Capital expenditure
2.4 bn EUR
computed by olivLawFY 2024
Free cash flow
-889.2 m EUR
computed by olivLawFY 2024
FCF conversion
-83.7%
computed by olivLawFY 2024
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
unavailable
input data missing
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
20.0 bn EUR
computed by olivLawbalance sheet at 31 Dec 2024
Enterprise value
30.8 bn EUR
computed by olivLawbalance sheet at 31 Dec 2024
Market cap / net income TTM
18.9x
computed by olivLawFY 2024
P/E (TTM)
18.9x
computed by olivLawFY 2024
Earnings yield
5.3%
computed by olivLawFY 2024
P/B
2.7x
computed by olivLawbalance sheet at 31 Dec 2024
P/S
5.5x
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
EV/EBITDA
unavailable
input data missing
EV/EBIT
18.3x
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
EV/Sales
8.5x
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
P/FCF
unavailable
the base of the ratio is not positive
FCF yield
-4.4%
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
Dividend yield
120.9%
computed by olivLawFY 2024
Shareholder yield (distributions)
3.4%
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 54.2% of at least 60%

A scoring methodology on indicators and valuation, not investment advice.

Closing price

9.86 EUR

05 Nov 2026Source: olivLaw, closing series

Market cap: 20.0 bn EUR

Key indicators

Market capitalisation
20.0 bn EUR
computed by olivLawbalance sheet at 31 Dec 2024
P/E (TTM)
18.9x
computed by olivLawFY 2024
P/B
2.7x
computed by olivLawbalance sheet at 31 Dec 2024
EV/EBITDA
unavailable
input data missing
ROE
15.3%
computed by olivLawFY 2024 · balance sheet at 31 Dec 2024
Net margin
29.4%
computed by olivLawFY 2024
Revenue growth (YoY)
15.8%
computed by olivLawFY 2024
Dividend yield
120.9%
computed by olivLawFY 2024

Coverage and freshness

25/37 reporting lines present
Latest full fiscal year: 2024
Latest reported period: 31 Dec 2024
Latest balance sheet date: 31 Dec 2024
Share count (cover of the latest filing), as of: 31 Dec 2024
Source: esefpublished 07 May 2025
verified 50derived 3

The data is older than the freshness threshold.

Score by group

54% · Insufficient data

Estimated value range

Low
82.70
EUR per share
Mid
96.99
EUR per share
High
116.51
EUR per share
Price: 9.86 EUR
The price is below the range
Potential to the central value: 883.7% (value / price − 1)
Margin of safety: 89.8% (1 − price / value)
Agreement between methods: low · 2 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.29 – 221.06 EUR.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (EUR per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)unavailable · the base of the ratio is not positive
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/E3.29 – 11.95 (Mid 6.93)
    20 companies used · median multiple 13.3x · quartiles 6.3x – 22.9x
    AC5.MI, ACE.MI, ADB.MI, AEF.MI, AMP.MI, ARN.MI, ASC.MI, BC.MI, BEC.MI, CAI.MI, CIR.MI, CLF.MI, CMB.MI, COM.MI, CRL.MI, CY4.MI, DEX.MI, DIA.MI, DLG.MI, DNR.MI
  • Dividend discount (DDM)162.11 – 221.06 (Mid 187.05)

Assumptions (illustrative, editorial)

Risk-free rate
3.0%
Equity risk premium
5.5%
Beta (default)
1.00
Cost of equity
8.5%
Terminal growth
2.0%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 54.2% of at least 60%

FactorValueScoreWeight used
ROIC · Quality6.9%50 (vs peers)19%
Net margin · Quality29.4%90 (vs peers)12%
FCF conversion · Quality-83.7%0 (on a fixed band)12%
Revenue CAGR 3Y · Growthunavailableunavailable—
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheet5.1x55 (on a fixed band)12%
Current ratio · Balance sheetunavailableunavailable—
P/E (TTM) · Valuation18.9x41 (vs peers)19%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuation-4.4%0 (on a fixed band)15%
Shareholder yield (distributions) · Returns3.4%49 (on a fixed band)12%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial55/100 · 1/3 factors with a value
  • Growth· partialunavailable · 0/2 factors with a value
  • Quality47/100 · 3/3 factors with a value
  • Returns· partial49/100 · 1/2 factors with a value
  • Valuation23/100 · 2/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

"TERNA - RETE ELETTRICA NAZIONALE SOCIETA' PER AZIONI" (IN FORMA ABBREVIATA "TERNA S.P.A.") (TRN.MI). Latest full fiscal year: 2024; data up to 2024-12-31.

Figures computed from the financial statements: revenue 3.6 bn EUR in 2024; YoY growth 15.8%; net margin 29.4%; ROE 15.3%.

The estimated value range is 82.70–116.51 EUR per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 96.99 EUR, the price of 9.86 EUR leaves a potential of 883.7% (value / price − 1) and a margin of safety of 89.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

Insufficient data for a verdict (score weight coverage: 54.2% of at least 60%).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 29.4%
  • The price is below the estimated value range

What contradicts it

  • FCF conversion: -83.7%
  • FCF yield: -4.4%
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Current ratio, EV/EBITDA, Payout ratio (FCF).

Versus the vertical median

Listed companies from Italy · same country · compared with 39 companies

Multiples and returns vs the median

P/E
18.9x
vertical median 15.7x
above median (+19.8%)
EV/EBITDA
—
vertical median 8.1x
P/S
5.5x
vertical median 1.1x
above median (+393.4%)
P/B
2.7x
vertical median 1.1x
above median (+146.3%)
ROE
15.3%
vertical median 8.5%
above median (+80.4%)
Net margin
29.4%
vertical median 6.2%
above median (+372.6%)
EBIT margin
46.4%
vertical median 9.5%
above median (+389.2%)
Revenue YoY
15.8%
vertical median 0.4%
above median (+3,602.3%)
Net debt/EBITDA
—
vertical median 0.5x
Dividend yield
120.9%
vertical median 3.7%
above median (+3,194.3%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
TRN.MI"terna - Rete Elettrica Nazionale Societa' Per Azioni" (in Forma Abbreviata "terna S.p.a.")20.0 bn18.915.3%29.4%+15.8%+8% / +33%
DLG.MIDe' Longhi S.p.a.6.8 bn21.515.4%8.4%+8.7%+24% / +60%
ACE.MIAcea S.p.a.4.6 bn9.618.2%16.6%+0.2%−4% / +73%
DIA.MIDiasorin S.p.a.4.3 bn28.39.2%13.0%+0.8%+31% / −7%
CRL.MICarel Industries S.p.a.2.9 bn39.516.1%11.7%+8.7%+3% / +10%
AMP.MIAmplifon S.p.a.2.7 bn29.98.5%3.8%−0.6%−9% / −58%
CMB.MICembre S.p.a.1.3 bn27.020.6%18.9%+6.7%+11% / +108%
COM.MIComer Industries S.p.a.1.3 bn18.612.8%7.1%−23.0%+8% / +64%
DNR.MIIndustrie De Nora S.p.a.1.1 bn13.48.6%9.4%+1.4%−22% / −62%
ARN.MIAlerion Clean Power S.p.a. In Forma Abbreviata Alerion S.p.a.969.2 m10.423.5%41.0%+1.8%−5% / −23%
AVIO.MIAvio S.p.a.883.6 m86.82.1%1.8%+21.5%+18% / +291%
CIR.MICir S.p.a. - Compagnie Industriali Riunite783.3 m6.017.1%7.3%+1.6%+4% / +72%
ASC.MIAscopiave S.p.a.646.3 m18.04.2%17.5%+13.4%−8% / +33%
AC5.MIAcinque S.p.a.412.6 m19.64.1%3.6%+0.2%−6% / +8%
BAN.MIBasic Net S.p.a.348.0 m—-4.9%-3.5%+0.4%−30% / +5%
ADB.MIAeroporto Guglielmo Marconi Di Bologna S.p.a.324.7 m13.111.1%13.7%+9.2%−2% / +12%
CAI.MICairo Communication S.p.a.289.2 m6.48.1%4.4%−1.3%−22% / +28%
ECNL.MIAquafil S.p.a.129.6 m—-3.2%-0.9%−3.9%−1% / −52%
BEC.MIB&C Speakers S.p.a.118.7 m11.718.5%10.2%−1.3%−26% / −32%
ABT.MIAbitare In S.p.a.76.0 m276.00.4%0.4%+39.8%−6% / −47%
ELC.MIElica S.p.a.64.3 m—-7.8%-2.2%+1.9%−34% / −48%
DEX.MIDexelance S.p.a.50.7 m2.811.0%5.4%+12.6%−63% / −78%
CLE.MIClass Editori S.p.a.35.1 m—-29.2%-3.8%−0.7%−9% / +106%
CLF.MICaleffi - S.p.a.11.6 m5.210.9%3.8%−2.5%−4% / −10%
AEF.MIAeffe S.p.a.10.1 m0.521.9%7.7%−21.3%−59% / −86%

1- and 3-year price returns: for TRN.MI from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (EUR)

Estimated priceBearBaseBull
1 years
6.44
Total return -30% · Per year -30%
11.34
Total return 21% · Per year 21%
17.01
Total return 80% · Per year 80%
3 years
7.64
Total return -7% · Per year -3%
15.00
Total return 73% · Per year 20%
24.49
Total return 175% · Per year 40%
5 years
9.07
Total return 20% · Per year 4%
19.83
Total return 142% · Per year 19%
35.27
Total return 312% · Per year 33%
What moves the 3-year price the most
  • Exit P/E± 3.75
  • Net margin± 2.62
  • Annual revenue growth± 1.96
  • Annual dilution± 0.22

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Terna runs Italy's national high-voltage transmission grid, balancing supply and demand in real time and connecting new capacity, including renewables. The company sits at the centre of Italy's energy transition, with an investment plan of over 23 billion euros for 2025-2034 1. In 2024, renewables covered 41.2% of national demand 1.

SWOT

Strengths

  • Terna owns the national transmission grid, with a regulated monopoly role and revenues linked to the regulated asset base 1.
  • The company has a financing structure with a high share of fixed-rate debt and committed credit lines that support investment 1.
  • System operation has shown continuity under extreme weather and generation conditions, including black-start restoration tests 1.

Weaknesses

  • Project delivery depends on permits and local acceptance, which can delay the investment timetable 1.
  • Reliance on a small number of critical equipment suppliers can create delays and extra costs 1.
  • Tariff adjustments reach the financial statements with a lag of about one year, creating a timing effect 1.

Opportunities

  • The 2025 Development Plan and the Hypergrid project could expand the regulated asset base over the long term 1.
  • Capital-light solutions can raise the capacity of the existing grid at lower cost than new infrastructure 1.
  • Electrochemical storage and interconnections could become additional sources of system services and revenue 1.

Threats

  • Regulatory risk, including tariff changes, can directly affect concession revenues 1.
  • Cyber-attacks and natural events can compromise service continuity and generate remediation costs 1.
  • Geopolitical tensions and trade policies of major economies can raise financial market volatility and costs 1.

Risks

  • Regulatory riskhigh

    Revenues depend on tariffs set by ARERA, and multi-year reviews can significantly change returns 1.

  • Investment execution riskhigh

    The technical complexity of HVDC projects and Hypergrid, along with permit delays, can affect the investment timetable 1.

  • Supplier riskmedium

    Pressure on the productive capacity of key suppliers can lead to delays and extra costs 1.

  • Climate and cyber riskmedium

    Extreme weather and cyber-attacks can interrupt service and affect the company's reputation 1.

  • Interest rate and financing risklow

    Although most debt is fixed-rate, refinancing long-term funding could cost more if market conditions change 1.

Investment thesis

What would need to be true (bull case)

  • If Development Plan investments are delivered on time, the regulated asset base could grow considerably over the coming decade 1.
  • The integration of renewables and the need for flexibility could support demand for Terna's system services and storage 1.
  • A debt structure mostly at fixed rates could limit the impact of higher interest rates on costs 1.

What would break the thesis

  • If permits or local acceptance delay projects, revenues could be deferred and costs could rise 1.
  • Stricter tariff reviews could reduce returns on new investment, particularly if the cost of capital falls 1.
  • Geopolitical tensions and cyber risks could generate unexpected costs and reputational damage 1.

What to watch

  • Evolution of the WACC and the 2026-2027 update mechanism2026
  • Commissioning timetable for the 2025 Development Plan and Hypergrid projects2030
  • Transition from the transitional phase to the consolidation phase of the TIDE model1 February 2026
  • Pace of commissioning of batteries contracted through the Capacity Market2025

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Terna operates as the transmission system operator of Italy's national grid under a government concession and ARERA regulation 1. Through dispatching, the company schedules grid and plant availability, forecasts demand and manages real-time power flows from a National Control Centre coordinating regional centres 1. Grid development is central, since the integration of renewables and system security depend on it 1.

The company manages cross-border exchanges through interconnections and market coupling, with a net import balance of 51.0 TWh in 2024 1. Terna also pursues capital-light solutions such as electrochemical storage and Dynamic Thermal Rating to extract more capacity from existing assets 1. Managing regulatory, operational and climate risks is a core part of the business 1.

The group's financing structure carries a high share of fixed-rate debt, at 84%, which limits immediate exposure to rising interest rates 1. The group states that its liquidity and committed credit lines cover its financing needs for the next 18-24 months 1.

Segments

Dispatching and system operation

Dispatching keeps supply and demand in instantaneous balance, with scheduling over multiple horizons and real-time monitoring 1. In 2024 Terna handled record renewable output and weather-driven volatility without interrupting service 1. It also carried out real black-start restoration tests in Sicily and Veneto 1.

Grid development and investment

The 2025 Development Plan includes interconnections, HVDC lines and the Hypergrid project, with milestones for 2030, 2034 and post-2034 1. Terna aims to extract more value from existing assets through capital-light measures such as higher transit limits and lower curtailment 1. Investments depend on permits and acceptance by local communities 1.

International exchanges and interconnections

Volumes traded through market coupling reached record levels in 2024, with exports up 47.9% on 2023 1. The company presents interconnections as tools for efficiency and security, with projects linking France, Austria, Tunisia and Sardinia in planning or development 1.

Market context

Terna operates in a regulated market where tariffs are set by ARERA on the basis of the regulated asset base and the cost of capital 1. The WACC is 5.5% for 2025, and the regulator introduced an update mechanism for 2026-2027 if the change exceeds 30 basis points 1. Electricity demand rose 2.2% in 2024 versus 2023, supporting the need for grid capacity 1.

The market is changing through renewable integration, the phase-out of coal plants and the move to the TIDE dispatching model, which introduces 15-minute imbalance settlement 1. Macroeconomic stability in 2024 reduced commodity price volatility, but geopolitical and trade risks remain 1.

Trends

  • Renewable integrationmixed

    Renewable output reached record levels, increasing the need for flexibility and transmission capacity 1. Over the long term this could support demand for grid investment, while also complicating system operation 1.

  • Electrochemical storagetailwind

    Batteries are used for frequency regulation and reserve services, and Terna has contracted significant capacity through auctions 1. If commissioning accelerates, this could ease pressure on traditional plants 1.

  • Geopolitical tensions and costsheadwind

    The war in Ukraine and the Middle East conflict have raised supply, cyber-attack and price-volatility risks 1. The company notes that key suppliers face capacity pressure, which can lead to delays 1.

  • Extreme weather eventsheadwind

    More frequent extreme climate events threaten infrastructure and service continuity, and the Resilience Plan responds to this risk 1. Grid hardening costs could rise but may also reduce outages 1.

Competitive position

Terna holds a legal monopoly for high-voltage transmission in Italy, and the sources analysed do not identify direct competitors in this activity 1. Competition appears instead in storage, renewable generation and energy services, where private operators can enter 1.

Indirect competition could come from distributed self-consumption and storage, which may change long-term grid needs 1. The sources do not describe US-listed competitors, so the list below is limited.

  • Other European transmission operators

    Indirect competition through interconnections and cross-border flows, with no directly equivalent US-listed peer identified in the source

  • Private electrochemical storage operators

    Take part in capacity auctions and balancing services, competing for the same system services

  • Renewable energy producers

    Can reduce reliance on traditional plants, influencing demand for balancing and transmission services

  • Local energy distributors

    Can develop distributed storage and flexibility solutions, partly substitutable for system services

News & filings

Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.