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Terna (TEZNY) AI Stock Analysis
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Terna
(Other OTC:TEZNY)
The score is anchored by solid earnings execution and confirmed 2026 guidance supported by improved margins, strong project visibility, and strengthened funding. This is tempered primarily by weak cash-flow quality (recurring negative free cash flow) and meaningful leverage, while technicals remain mixed with the price below key longer-term averages. Valuation is reasonable with a supportive dividend yield.
Terna (TEZNY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $21.48B
- Dividend Yield
- 4.21%
- Average Volume (3M)
- 34.06K
- Price to Earnings (P/E)
- 17.4
- Beta (1Y)
- -0.05
- Revenue Growth
- 19.35%
- EPS Growth
- 8.24%
- Country
- US
- Employees
- 7,117
- Sector
- Utilities
- Sector Strength
- 66
- Industry
- Regulated Electric
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 nation...
How the Company Makes Money
Terna primarily makes money through regulated revenues tied to its role as Italy’s electricity transmission operator. The core revenue stream comes from tariffs/allowed remuneration set under Italy’s regulatory framework for transmission, which compe...
Terna Earnings Call Summary
The call presented a largely positive operational and financial performance: double‑digit group revenue growth, strong nonregulated expansion, improved EBITDA margin, accelerated CapEx execution with key project milestones, solid cash generation and successful sustainable financing transactions. Notable negatives include a sharp rise in operating costs (+21%), only modest net income growth (+1% reported), higher finance costs and taxes, and regulatory/WACC uncertainty and procurement risks that could pressure future returns. On balance, the positive execution, funding achievements and growth drivers outweigh the challenges, though management will need to manage cost inflation and regulatory risk going forward.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management fully confirmed 2026 guidance, citing strong H1 execution and high visibility: group revenues €2.1bn (+12%), EBITDA €1.5bn (+8%) with a 24% margin (vs 20% a year ago), EBIT €961m (+5%) and net income €591m (+1%); cash flow generation ~€1.7bn and net debt €12.6bn (≈€0.5bn below 2025 year-end) with ~72% of gross debt at fixed rate and average maturity ~6 years; H1 CapEx €1.6bn (+20%) including ~€1.5bn in regulated activities (≈60% development, ~30% asset renewal/efficiency, defense ~€172m) and nonregulated/other ~€116m; project execution visibility high (≈92% of 2024–28 projects covered by contracts awarded, ≈93% authorized); OBIs expected around €200m for 2026 (H1 recognized ~€76m: €43m interzonal, €33m MSD); and strengthened funding (€850m European Green Hybrid Bond with >€7bn orders and subordination premium <60bps, €100m ESG-linked facility, EMTN program increased to €6bn) underpin management’s confidence in meeting the full‑year targets.
Terna Financial Statement Overview
Summary
Strong profitability and a notable 2025 revenue step-up support earnings strength (Income Statement Score 78). Balance sheet leverage is improving but still meaningful and latest-period asset visibility is limited (Balance Sheet Score 62). The largest drag is cash-flow quality: free cash flow has been negative in most recent years and cash conversion versus net income is weak despite strong reported earnings (Cash Flow Score 41).
Income Statement
78PositiveBalance Sheet
62PositiveCash Flow
41Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.27B | 3.79B | 3.65B | 3.15B | 2.92B | 2.57B |
| Gross Profit | 1.91B | 1.82B | 3.34B | 2.58B | 2.42B | 2.16B |
| EBITDA | 2.85B | 2.56B | 2.55B | 2.14B | 2.04B | 1.83B |
| Net Income | 1.12B | 1.07B | 1.06B | 885.40M | 857.00M | 789.40M |
Balance Sheet | ||||||
| Total Assets | 30.55B | 35.24B | 27.19B | 23.47B | 22.83B | 22.39B |
| Cash, Cash Equivalents and Short-Term Investments | 2.27B | 3.01B | 2.76B | 1.74B | 2.41B | 2.55B |
| Total Debt | 14.86B | 11.67B | 13.86B | 12.98B | 10.81B | 12.42B |
| Total Liabilities | 21.86B | 28.15B | 19.64B | 17.10B | 16.63B | 17.60B |
| Stockholders Equity | 8.63B | 7.77B | 7.52B | 6.32B | 5.15B | 4.68B |
Cash Flow | ||||||
| Free Cash Flow | -211.76M | -304.97M | -1.16B | -963.90M | 831.40M | -511.90M |
| Operating Cash Flow | 3.01B | 2.52B | 1.47B | 1.08B | 2.32B | 832.30M |
| Investing Cash Flow | -3.46B | -3.68B | -2.40B | -2.33B | -1.86B | -863.30M |
| Financing Cash Flow | 11.41M | 700.80M | 1.87B | 464.30M | 92.50M | -1.05B |
Terna Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TEZNY, the sentiment is Positive. The current price of 32.14 is above the 20-day moving average (MA) of 31.39, above the 50-day MA of 32.07, and below the 200-day MA of 33.62, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.66 is Neutral, neither overbought nor oversold. The STOCH value of 81.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TEZNY.
Terna Peers Comparison
Overall Rating
AEP73Outperform
NGG68.35Neutral
EXC67Neutral- TEZNY62Neutral
PPL62Neutral
KEP60Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AEP | 73Outperform | $70.90B | 21.07 | 10.49% | 2.92% | 9.75% | -9.77% |
| NGG | 68Neutral | $84.48B | 19.01 | 8.47% | 3.86% | 1.13% | 13.83% |
| EXC | 67Neutral | $47.65B | 17.96 | 8.95% | 3.60% | 6.67% | ― |
| Sector * | 66Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% |
| TEZNY | 62Neutral | $21.57B | 17.45 | 13.60% | 4.21% | 19.35% | 8.24% |
| PPL | 62Neutral | $26.83B | 20.97 | 8.53% | 3.16% | 6.73% | 26.95% |
| KEP | 60Neutral | $13.77B | 2.34 | 16.03% | 5.05% | -1.36% | 22.18% |
* Utilities Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TEZNY | Terna S.p.A. Unsponsored ADR | 32.14 | 2.29 | 7.66% | |
| AEP | American Electric Power Company, Inc. | 130.21 | 13.90 | 11.95% | |
| EXC | Exelon Corp. | 46.16 | 1.60 | 3.58% | |
| KEP | Korea Electric Power | 10.34 | -5.62 | -35.21% | |
| NGG | National Grid | 83.95 | 12.12 | 16.88% | |
| PPL | PPL Corporation | 35.65 | 0.38 | 1.08% |
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.
Date of analysis: Oct 30, 2026