Snam Earnings: Regulated Revenue Drives Net Profit Ahead of Guidance; 2025 Outlook Confirmed

No-moat Snam delivered solid 2024 results that were largely in line with guidance. Management reaffirmed its financial targets for 2025, as outlined in its strategic plan, including adjusted EBITDA of EUR 2.85 billion and adjusted net income of EUR 1.23 billion. It now expects net debt to reach EUR 18.4 billion, or EUR 200 million below the previously stated target. The 2024 dividend was set at EUR 0.29 per share, aligning with management’s announced payout policy; this implies 3% growth versus 2023 and a juicy 6.3% yield. We maintain our EUR 4.70 fair value estimate and view the shares as fairly valued.