Statistical Bulletin no. 26/3 - Issuers - June 2025 
 

Listed italian companies in 2024

In 2024, the landscape of Italian listed companies showed a good ability to adapt to an evolving economic scenario, marked by the normalisation of interest rates and a still uncertain global geopolitical context. Although the trajectories differed between sectors, the profitability of companies listed on EXM remained solid, often improving compared to the previous year, thanks in part to greater operating efficiency and stable margins, particularly in the banking sector and among non-financial companies. In contrast, the trend of slowing profitability among small capitalisation companies listed on the EGM was confirmed. Overall, leverage was reduced in most sectors, with the exception of insurance, strengthening the sustainability of financial structures. This path has been supported by profit distribution policies aimed at greater balance, with generally stable or moderate payout ratios in sectors focused on strengthening capital, and more generous payouts where capital solidity or the intention to maintain shareholder remuneration made it appropriate. In summary, 2024 represented a year of transition towards more resilient business models, characterised by an increased focus on financial strength and prudent risk management in a still unstable economic environment.

Italian companies other than banks and insurance companies listed on EXM

In 2024, Italian companies, excluding banks and insurance companies, listed on the main stock market EXM reported total profits of 28.7 billion euros, up 17.8 percent from the previous year. This positive result was achieved despite a decline in EBIT of about EUR 1.3 billion and an increase in financial expenses of about EUR 0.9 billion compared to 2023. Supporting the performance was mainly the increase in financial income, which rose by 1.6 billion euros, and the significant reduction in net extraordinary expenses, which fell by 6 billion. Shareholders' equity increased 5.8 percent to 262.7 billion euros at the end of 2024, up from 248.3 billion euros a year earlier.

An analysis of the aggregate balance sheet ratios of Italian non-financial companies listed on the EXM market shows an overall improvement in profitability in 2024, accompanied by some signs of strengthening of the financial structure and by a confirmation of shareholder remuneration policies. Return on Equity (ROE) increased to 10.9%, up from 9.6% in 2023, despite persistent pressures on the operating front. Return on Assets (ROA) also improved from 2.3% in 2023 to 2.6% in 2024, highlighting greater efficiency in the use of invested capital. Return on Sales (ROS) stood at 11.2%, an improvement from 10.8% in the previous year, consolidating a multi-year positive trajectory in terms of net profitability per unit of revenue.

On the operational side, margins showed a general strengthening. The EBITDA Margin reached 19.4%, up from 18.5% in 2023 and 14.6% in 2022, while the Net Margin stood at 6.8%, a marked improvement from 5.4% in the previous year. This confirms a more efficient management of the cost structure after the inflationary shock and increased cost of capital. The growth in the Free Cash Flow Margin was also particularly significant, rising to 6.6% from 5.4% in 2023 and 3.9% in 2022, indicating a strengthened ability to generate operating cash, a crucial element in a context of normalising financing conditions.

On the financial structure side, debt ratios showed a gradual improvement. The Debt to Equity Ratio fell to 138.6%, down from 143.5% in the previous year and well below the 159.2% of 2022. This reflects both an increase in equity and a more careful management of leverage. The Net Debt to EBITDA ratio also remained broadly stable at 324.4%, consistent with 2023 levels, signalling a balance between net debt and gross operating margins. The Interest Coverage Ratio, while declining to 602.2% from 673.8% in the previous year, remains at safe levels, confirming adequate coverage of financial expenses even in a high interest rate scenario.

In terms of market multiples, there was a decline in the Price/Earnings Ratio (P/E) to 13.2x, down from 15.0x in 2023. This reflects the rise in earnings, against an overall stable stock market price for this segment. The Price/Book Ratio (P/B) remains stable at 1.45x, in line with 2023 but up from 1.23x in 2022, suggesting continued investor confidence in the companies' prospective value. Finally, shareholder remuneration policies are consistent with the improvement in cash generation, while showing more prudence in distribution. The Dividend Yield remained high at 4.2%, while the Dividend Payout Ratio fell to 56.0% from 64.2% a year earlier. This adjustment signals companies’ intention to balance shareholder returns with the need to strengthen their capital structure, in view of potential investments or external shocks.

Italian companies traded on EGM

In 2024, Italian companies listed on the EGM growth stock market reported profits of 165 million euros, down 54.9 percent from the end of 2023. The decrease was mainly attributable to an increase in administrative expenses, which rose by 70 million euros, a decrease in financial income, which fell by 81 million, and an increase in tax expenses, which rose by 32 million. These dynamics occurred against a substantially stable value added. Despite the decline in earnings, shareholders' equity increased by about 10 percent to 5.3 billion euros at the end of 2024, up from 4.8 billion euros a year earlier.

An analysis of the aggregated balance sheet ratios of Italian companies listed on the EGM shows that in 2024, all key profitability indicators deteriorated. Return on Equity (ROE) fell to 3.1%, down sharply from 6.7% in 2023 and well below the 10.9% recorded in 2022. Similarly, Return on Assets (ROA) decreased to 1.3%, down from 2.8% in the previous year. Return on Sales (ROS) also deteriorated from 5.3% to 3.9%, consistent with the picture of rising administrative costs.

These dynamics were also reflected in the margins. The EBITDA Margin contracted to 7.4%, almost halving from 13.1% in 2023, and the Net Margin followed a similar trend, dropping to 1.7%, reflecting the erosion of profitability along the entire income statement chain. However, a positive sign came from the Free Cash Flow Margin, which rose to 4.8%, after the negative figure of -1.0% recorded in 2023. This improvement points to an increased focus on operational cash management, which is particularly relevant for companies in the growth phase and in a higher cost of capital environment.

In terms of financial sustainability, the indicators show some resilience, with signs of improvement in the debt to equity ratio. The Debt to Equity Ratio decreased to 61.2%, an improvement from 67.1% in 2023, suggesting a more balanced financial structure. However, the Net Debt to EBITDA Ratio increased to 192.2%, signalling a lower debt repayment capacity as operating margins decreased. At the same time, the Interest Coverage Ratio fell to 362.3%, remaining at sustainable levels, but far from the peaks of over 1200% recorded in 2022, also a sign of an increasing incidence of financial expenses.

Market multiples reflect some disconnect between economic performance and investor expectations. The Price/Earnings Ratio (P/E) more than doubled from 22.4x to 49.8x, the combined effect of falling earnings and resilient market valuations. This level indicates high confidence among traders in a future earnings recovery. On the other hand, the Price/Book Ratio (P/B) remained stable at 1.53x, suggesting a valuation in line with equity growth. Lastly, on the shareholder remuneration front, there was a marked increase in the Dividend Payout Ratio, which rose from 32.0% to 77.7%, against a Dividend Yield that rose slightly to 1.6%. This dynamic reflects the companies' desire to maintain their shareholder distribution policies and supports the thesis of a drop in profitability perceived overall as transitory.

Italian banks listed on EXM

In 2024, Italian banks listed on the EXM reported total profits of 28.5 billion euros, an increase of 8.4 percent from the previous year. This result mainly reflects the growth in net interest income, which increased by 2.9 billion euros due to the persistence of market rates on loans higher than the average of the previous decade. Net assets showed an increase of 2.9 percent to 197.3 billion euros at the end of 2024, up from 191.7 billion euros a year earlier.

The analysis of the main aggregated balance sheet ratios for listed Italian banks shows that in 2024 the trend of improving profitability already observed in 2023 was consolidated. In particular, Return on Equity (ROE) rose from 13.7% in 2023 to 14.4% in 2024, while Return on Assets (ROA) increased from 1% to 1.1% over the same period. These results were achieved despite a slight decrease in the Leverage Ratio from 13.6x to 13.1x, signalling a strengthening of operating leverage against lower leverage.

The improvement in profitability can be attributed to a twofold factor: on the one hand, a progressive streamlining of the operating structure; on the other, a favourable environment in terms of intermediation margins. The Cost to Income Ratio, a key indicator of operating efficiency, decreased to 57.8% in 2024, compared to 58.9% in 2023 and 68.2% in 2022. This dynamic reflects a greater ability of banks to contain operating costs, even in the presence of revenue growth. This is also supported by an increase in the Net Interest Margin to 2.1% in 2024 from 2% in 2023, benefiting from a still favourable interest rate environment for maturity transformation activities.

On the credit quality front, the 2024 figures show an NPL Ratio rising slightly to 3.2%, up from 3% the previous year. This change, while requiring attention, does not seem likely to compromise the stability of the system, also thanks to coverage and capitalisation levels that remain solid. The Coverage Ratio stands at 69.2%, down from 78% in 2023, but in line with 2022 levels (69.1%). This points to prudent credit risk management, despite a marginal deterioration in asset quality. The Loan to Deposit Ratio, an indicator of bank liquidity, remained broadly stable over the three-year period, settling at 118.7% at the end of 2024. This level is consistent with a balanced capital structure and reflects the Italian banking system's ability to finance the real economy while maintaining a solid retail funding base.

The good profitability dynamics and robustness of the sector were also reflected in the market multiples. The Price/Earnings Ratio (P/E) increased from 6.7x in 2022 to 7.0x in 2024, reflecting greater investor confidence in the sustainability of earnings in the medium term. At the same time, the Price/Book Ratio (P/B) rose even more sharply, from 0.58x to 1.01x over the same period. 2024 was also a particularly good year on the shareholder remuneration front. The Dividend Yield reached 7.8% at the end of 2024, a significant increase from the 6.5% recorded in both 2022 and 2023. This performance was made possible by an increase in the Dividend Payout Ratio, which reached 54.7% in 2024 compared to 34.8% in 2023, highlighting the banks' willingness to redistribute a greater share of their profits in liquid form, thereby strengthening the appeal of equities in the sector for income seeking investors.

Italian insurance companies listed on EXM

In 2024, italian insurance companies listed on the EXM reported total profits of EUR 5.3 billion, essentially stable compared to the previous year. The segment's result was negatively impacted by higher costs related to losses, claims and reserves, which rose by 3.6 billion euros, and the significant increase in selling, general and administrative expenses of 5.7 billion euros. These dynamics offset higher revenues recorded from operating activities (+2.3 billion), net revenues from investment activities (+2.9 billion) and insurance revenues (+4.9 billion). Shareholders' equity showed growth of 4.5 percent, standing at 43 billion euros at the end of 2024, up from 41.1 billion euros a year earlier.

The analysis of the main aggregate balance sheet indicators for listed Italian insurance companies in 2024 shows a slight decrease in profitability compared to the previous year, although still significantly higher than the levels observed in 2022. In particular, Return on Equity (ROE) stood at 12.4%, down from 13.1% in 2023, but well above the 8.6% observed in 2022. At the same time, Return on Assets (ROA) remained stable at 0.9%, with the Leverage Ratio increasing slightly from 14.1x to 14.5x, indicating higher leverage. However, the segment was able to count on a significant recovery in investment profitability. Investment Yield reached 4.6% in 2024, up from 4.3% in 2023 and recovering from the strongly negative figure recorded in 2022 (-1.8%). This improvement is mainly attributable to the normalisation of the interest rate environment, which generated stronger returns on bond portfolios.

Market valuations reflected investors' confidence in the sector's resilience and its ability to generate sustainable earnings. The Price/Earnings Ratio (P/E) increased from 9.3x in 2022 to 9.7x in 2024, while the Price/Book Ratio (P/B) showed an even more significant expansion from 0.8x to 1.2x. This multiple, in particular, suggests that the market has revised upwards its estimates of the asset quality of the Italian insurance sector. Looking at shareholder remuneration, on the other hand, it is possible to note that the Dividend Yield declined to 4.5% in 2024, down sharply from 6.4% in 2023 and 7.4% in 2022. This figure can be interpreted in two complementary directions: on the one hand, it reflects a strengthening of market valuations, which squeezes the dividend yield at the same payout; on the other hand, it signals an increasing cautiousness in the profit distribution policy of insurance companies. Indeed, the Dividend Payout Ratio, while increasing year-on-year (43.8% in 2024 compared to 40.6% in 2023), remains well below the level observed in 2022 (68.7%). This suggests a more conservative strategy on the part of industry players, geared towards strengthening capital, covering prudential requirements and the need to preserve flexibility in a regulatory and economic scenario that remains complex and prone to volatility.

The Report was prepared by:
Francesco Scalese - CONSOB, Statistics Office, Research Department (f.scalese@consob.it)

Davide Danzilli - CONSOB, Statistics Office, Research Department (d.danzilli@consob.it)

Thanks to Andrea Conforti  - CONSOB, (a.conforti@consob.it) and Factset for the support.

Editorial secretary: Andrea Cianciullo

For information and clarifications write to: Ufficio.Statistiche@consob.it