6.1Summary of Results
During the 2025 financial year, gas demand showed a recovery trend compared to previous years’ levels. This trend occurred in an environment where average gas prices were slightly higher than in 2024 and temperatures were significantly colder during the months of greatest seasonal impact compared to the previous period.
In this market environment, the company has achieved a positive result, with a 5% increase in total gas demand compared to the previous year.
At the overall market level, and according to Enagás indicators, the global conventional sector recorded a decline of 2.2%. This figure is attributable to the performance of industrial consumption, which was 5.2% lower than the previous year. However, this decline was offset by the dynamism of the domestic-commercial and SME segment, where demand grew by 8%. Against this backdrop, the company’s 7% growth confirms the strength of its portfolio and reflects robust and resilient organic growth in the face of the current situation in the industrial sector.
Madrileña Red de Gas generated revenue of €148 million, 3.5% below the figure for 2024, offsetting an additional regulatory cut of €4.6 million compared to the one applied in the previous year, in line with the adjustment provided for in the current regulatory framework.
Madrileña Red de Gas’s main activity, the distribution of natural gas, is a regulated activity, with regulatory periods spanning six years. The 2025 financial year was the fifth year of the 2021-2026 regulatory period, in which the gas year ended on 30 September.
Remuneration for distribution activities is the company’s main source of revenue. This remuneration is calculated annually using a parametric formula and varies according to growth in supply points and demand for gas transported via the network.
At the end of 2025, the company served 911,097 supply points (909,915 as at 31 December 2024). Of this total, 3,579 correspond to supply points acquired under a framework agreement between Aliara GLP, S.L.U. and Madrileña Red de Gas, SAU for the purchase and transfer of LPG networks and facilities, approved on 21 July 2025 by the Directorate-General for Energy Transition and the Circular Economy, and which it has been decided to convert to natural gas.
6.2Operating Results
The operating results presented reflect the activity of Madrileña Red de Gas on a consolidated basis, in accordance with International Financial Reporting Standards (IFRS), providing a complete picture of the group’s activity and its balance sheet structure. The companies included in the scope of consolidation are Madrileña Red de Gas SAU, MRG Finance BV, Aliara Energía SA, Aliara GLP SLU, Elisandra Spain V SLU, and Elisandra Spain IV SL.
Consolidated EBITDA for 2025 stood at €108.3 million, 4.4% lower than the previous year’s figure. Revenue from fees remained virtually unchanged from the previous year, with the impact of the increased regulatory cut-back fully offset. The lower EBITDA is the result of reduced activity volumes for periodic inspections, in line with the scheduled review cycle, lower volumes of LPG managed in accordance with active LPG supply points, and the containment of other operating expenses through efficiencies in other operational areas.
Net profit stood at €39.8 million, in line with the previous year, driven by lower extraordinary and financial expenses, following the debt restructuring carried out in 2024 and a reduction in debt levels during the year by €160 million.
| 2024 | 2025 | 1 Consolidated profit and loss account in accordance with IFRS (International Financial Reporting Standards). The companies included in the scope of consolidation are: Madrileña Red de Gas SAU, MRG Finance BV, Aliara Energía SA, Aliara GLP SLU, Elisandra Spain V SLU, and Elisandra Spain IV SL. 2 Excluding non-recurring expenses. |
| Regulated remuneration | 117.8 | 117.5 |
| Other revenues | 35.5 | 30.4 |
| EBITDA2 | 113.3 | 108.3 |
| EBIT | 77.1 | 75.6 |
| Net profit | 39.7 | 39.8 |
6.3Revenue
The company generated revenue of €148 million. 96% of consolidated revenue comes from regulated activities.
Of the total revenue, €138.3 million came from the regulated natural gas business, whilst €3 million originated from the LPG business, and the remaining €6.7 million came from non-regulated activities carried out mainly by the company Aliara Energía.
Within the natural gas business, 83% was contributed by the regulated remuneration for distribution activities, comprising the figure set by the CNMC’s Resolutions of 27 May 2025 and 23 May 2024, as well as the best estimate made by Management for the remuneration corresponding to the last quarter of 2025 for the gas year 2026.
The remaining 17% relates to other services connected with the natural gas distribution business, such as meter hire, periodic inspections and other services offered to consumers.
6.4Financial Position and Balance Sheet
The balance sheet presented reflects the group’s structure at a consolidated level in accordance with International Financial Reporting Standards (IFRS).
Financial strength is a cornerstone of Madrileña Red de Gas’s strategy. The company has strong levels of solvency and liquidity, consistent with an investment-grade credit rating. The financial structure is efficient in the long term.
In the 2025 financial year, consolidated gross debt totals €740 million and matures in 2027, 2028, 2029 and 2031.
The refinancing of the €300 million bond maturing in April 2025 has been successfully completed using a €180 million loan facility, in line with the deleveraging strategy.
In addition, in June and December 2025, partial repayments of the €180 million loan were made in the amounts of €15 million and €25 million respectively, in accordance with the planned deleveraging schedule.
The group also has a contingent credit facility of €75 million, maturing in February 2027, which is aligned with the company’s actual needs for the coming years.
The flexible dividend policy is another key feature that gives the company greater adaptability and, consequently, greater financial strength.
Of the group’s total debt, €375 million is issued by MRG Finance BV on the regulated market in Luxembourg under an EMTN programme. This debt is rated investment grade (BBB-) by Standard & Poor’s and the rating agency DBRS, which upgraded the rating in 2024 to BBB (stable) from BBB (low).
| 2024 | 2025 | 1 Consolidated balance sheet in accordance with IFRS (International Financial Reporting Standards). The companies included in the scope of consolidation are: Madrileña Red de Gas SAU, MRG Finance BV, Aliara Energía SA, Aliara GLP SLU, Elisandra Spain V SLU, and Elisandra Spain IV SL. |
| Gas distribution licenses and other intangibles | 1,573.2 | 1,573.2 |
| Tangible fixed assets | 307.7 | 290.6 |
| Total fixed assets for distribution network | 1,880.8 | 1,863.8 |
| Deferred tax assets | 14.3 | 16.3 |
| Other non-current assets | 2.7 | 2.7 |
| Current assets | 48.5 | 40.2 |
| Cash | 126.6 | 43.6 |
| Total assets | 2,072.9 | 1,965.6 |
| Net equity | 788.3 | 827.5 |
| Long term debt | 596.6 | 718.2 |
| Deferred tax liabilities | 326.5 | 336.1 |
| Other non-current liabilities | 29.6 | 28.4 |
| Current liabilities | 331.8 | 55.3 |
| Total liabilities & net equity | 2,072.9 | 1,965.6 |
6.5Cash Flow from Operations
Operating cash flow stood at €99 million, compared with €83 million the previous year.
The improvement in operating cash flow in 2025 is explained by the reduction in the system deficit, the increase in turnover and the adjustment of the remuneration recognised by the CNMC in response to variations in demand.
Free cash flow after debt servicing was a negative €83 million, as a result of debt repayments made during the year totalling €160 million.
| 2024 | 2025 | 1 Consolidated cash flow in accordance with IFRS (International Financial Reporting Standards). The companies included in the scope of consolidation are: Madrileña Red de Gas SAU, MRG Finance BV, Aliara Energía SA, Aliara GLP SLU, Elisandra Spain V SLU, and Elisandra Spain IV SL. |
| EBITDA | 113.0 | 108.3 |
| Corporate tax | -0.5 | -7.5 |
| Working capital | -16.2 | 11.9 |
| Capex | -13.2 | -13.3 |
| Free cash flow | 83.1 | 99.4 |
| Debt service | -24.5 | -182.4 |
| Free cash flow after debt service | 58.6 | -83.0 |
6.6Investments
In 2025, investment totalled €13.3 million, compared with the €13.2 million spent in 2024.
The company continues to invest steadily in its own networks and other projects, as well as in the conversion of supply points from LPG to natural gas. Depending on their nature, these can be classified into the following categories:
Expansion
Madrileña Red de Gas has invested €8.3 million, of which €6.9 million was for the expansion of the natural gas network and €1.4 million for the LPG-to-natural gas conversion scheme.
Other projects
Investments remained at similar levels to the previous year, focused on network maintenance, fraud prevention, digitalisation and the development of information systems, with the aim of improving operational efficiency and the quality of customer service.