Corporate Credit Rating for VEOS SPA: B1(First Issuance) 16/02/2026

The Group, headquartered in Milan (MI) with its registered office in Monza (MB), operates in the supply and management of electricity and biofuels through VEOS and its subsidiaries ARTHEA, AMPERIS, and SEED. VEOS operates as a Dispatching User (DPU), purchasing electricity on the Italian Power Exchange (GME); additionally, the Company sources vegetable oil from selected suppliers. TECNOPARCO VB, an affiliated company and the Group’s main customer, converts these vegetable oils into energy through biofuel plants, benefiting from incentive tariff schemes. The energy produced is partly consumed at TECNOPARCO VB’s industrial site and partly sold to end customers (approximately 16,000 PODs — mainly residential condominium users) throughout Italy. The subsidiary E.GEO, a leading Italian company in the design of geothermal heat pump systems, provides Engineering, Procurement & Construction (EPC) services for turnkey civil and industrial installations. Meanwhile, the subsidiary ENNOVIA complements the Group’s offering by providing plant financing, management, and maintenance services, as well as energy supply under the so-called “Servizio Energia Plus” model. Another area of the Group’s operations is the environmental sector, where authorizations have been obtained for the construction of two plants for biomethane and compost production from the organic fraction of municipal solid waste (FORSU), each with a capacity of 69.5 kt per year. The Group’s shareholding structure consists of Barallina Srl (60%), controlled by the Orlandi family, together with Riccardo Bani and Egidio Ricciuti, each holding a 20% stake in the share capital of €2 million.

In 2024, the VEOS Group reported a Value of Production (VoP) of €93.4 million, attributable primarily to its core activities, namely energy management services and the sale of vegetable fuel oils. The 31% year-on-year decline in VoP is mainly attributable to subsidiaries operating in the energy efficiency sector, which experienced a contraction in business volumes as a direct consequence of the revision of the regulatory framework governing building incentive schemes. 

The Group recorded a consolidated EBITDA of €7.0 million, with margins stable at around 7% and satisfactory levels of ROE and ROI. Net profit for the year was entirely retained to reinforce shareholders’ equity, contributing to a sound leverage profile. The Group’s investment plan resulted in an increase in financial debt to €14.6 million (+€3.3 million year-on-year) and a deterioration in the Net Financial Position, with the positive balance decreasing from €7.0 million to €1.4 million. During 2024, the Group raised new financing of €3.3 million to support TEON’s new heat pump production hub. Total investment requirements, amounting to €5.4 million, were also related to ENNOVIA’s development of two thermal plants under the “Servizio Energia Plus” (SEP) model, as well as engineering costs incurred in preparation for the construction of two FORSU biomethane plants. These expenditures were partially covered by operating cash flows, which, although positive, declined significantly compared with 2023, mainly due to the increase in receivables exposure toward TECNOPARCO VB (+€6.9 million) and substantial utilizations of provisions for risks and charges (€5.1 million). It should also be noted that dividends of €2.0 million were distributed, alongside the parent company shareholders’ waiver of a €1.1 million shareholder loan. These dynamics resulted in a cash absorption of €2.3 million, with liquidity decreasing to €16.0 million.

In response to the phase-out of the “Superbonus” tax incentive scheme, the Group introduced two new business models. The first is the SEP – Servizio Energia Plus, a solution offering energy efficiency retrofitting interventions primarily for residential condominium buildings. The second is the “Cloud Photovoltaics” model, which enables customers to benefit from solar energy even where the installation of a traditional photovoltaic system is not feasible. To support the first business model, the Group entered a partnership with Azimuth ELTIF Infrastructure and Real Estate, establishing the investment vehicle PH2 (80% Azimuth – 20% VEOS), dedicated to investments in the electrification of civil thermal energy consumption through heat pumps. These include medium- to large-scale high-temperature heat pumps for building heating, tertiary-sector applications, and industrial processes, replacing conventional boilers. The systems are manufactured and marketed by the subsidiary TEON at its new production site, which will significantly expand its manufacturing capacity.

At the same time, alongside the traditional photovoltaic and heat pump offerings targeting retail customers, the subsidiary ESSERENERGIA launched the “Cloud Photovoltaics” initiative. The project focuses on the direct development of medium- to large-scale photovoltaic generation facilities, intended to serve residential customers and micro-enterprises under multi-year contractual arrangements. Although the investments linked to the evolution of the energy efficiency business are expected to result in higher financial leverage over the 2025–2026 period, a gradual reduction in the Net Financial Position is anticipated from 2027–2028 onwards, supported by the cash flows generated by the business.

The analysis of the Bank of Italy Central Credit Register (Centrale dei Rischi) for VEOS and ARTHEA does not reveal any issues related to disputes or credit anomalies over the period under review. The management of VEOS’s self-liquidating and revolving credit lines shows no signs of financial strain, while ARTHEA records elevated usage levels on its self-liquidating facilities, although no overdraft occurrences have been reported.

The Group is governed by a Board of Directors chaired by Mr. Massimo Orlandi, with shareholders Egidio Ricciuti and Riccardo Bani serving as Chief Executive Officers. The internal control body, structured as a collegiate board, is chaired by Fabio Enrico Pessina, while statutory audit responsibilities are entrusted to Dr. Maristella Lecchi.

No adverse findings have been identified with regard to VEOS or its directors.

In terms of size, the Group is among the largest companies in its reference peer group, despite the decline in sales revenues. While profitability in 2024 remained below the sector median, the Group maintained satisfactory EBITDA margins of around 7% and a ROE of approximately 13%, broadly stable compared with the previous year. Its solvency profile is stronger than that of the peer group, supported by a solid equity base (€34.8 million), which keeps both leverage and financial leverage at healthy levels. Building on this, the broader peer group reveals additional trends.
Overall, the peer group shows balanced financial leverage relative to equity, with a gradual reduction in total debt. Liquidity indicators remain adequate, consistently above one throughout the analysis period. Meanwhile, median ROE across the peer group has improved over the four-year period, reaching a solid level in 2024.

The Italian energy market closed 2024 with growth and progressive normalization following the energy crisis. Oil consumption increased by 1% (58 million tonnes), with domestic sales up 2.2%, supported by fuels for mobility—gasoline (+5.3%), diesel (+1%), and jet fuel (+11%), which hit historic highs. In the electricity and gas sector, prices declined in 2024 thanks to the expansion of renewables—photovoltaic, wind, and hydro now account for just under 50% of electricity production—lower consumption, and favorable weather conditions. Nevertheless, costs remain above pre-crisis levels due to fossil fuel prices.
Terna S.p.a, the Italian leading operator of electricity transmission grids, launched €2.3 billion in strategic infrastructure investments and introduced MACSE, a new scheme designed to incentivize energy storage facilities, with auctions scheduled to begin in 2025. In the gas sector, the share of LNG in imports rose to 38% in 2024, supported by new terminals in Piombino and Ravenna (operational from 2025). As of 31 December 2024, storage levels hit a record 10,000 million m³ (105.7 TWh), and by April 2025, 47% of capacity was filled, with 90% already reserved for the 2025/26 period.

Despite the progress achieved, structural vulnerabilities persist, notably dependence on imports and susceptibility to geopolitical and climatic factors. Overall, 2024 and early 2025 show a more balanced energy system, in which traditional petroleum products remain central for mobility, while biofuels and low-carbon fuels are gaining importance, in line with decarbonization targets for 2030.

During Q1 2025, the Italian economy experienced moderate expansion, with growth largely supported by household consumption, underpinned by stable employment and rising real incomes. Investments, however, remained weak, penalized by low utilization of production capacity and still-restrictive financial conditions. Growth was driven primarily by the services sector, while manufacturing showed signs of recovery that could be dampened in the coming months by tighter tariffs and geopolitical uncertainties. The construction sector also contributed positively, supported by projects under the PNRR, which offset declines in the residential segment. According to the latest projections by the Bank of Italy, GDP is expected to increase by 0.6% in 2025, 0.8% in 2026, and 0.7% in 2027, driven mainly by domestic demand and the implementation of public investments planned under the PNRR.

In the following table, the addressing factors, actions or events that could lead to an upgrade or a downgrade are summarized: 

The present Corporate Credit rating is issued by modefinance under EU Regulation 1060/2009 and following amendments.

The present rating is solicited and is based on both private and public information. The rated entity and/or related third parties have provided all private information used. modefinance had access to some accounts and other relevant internal documents of the rated entity and/or related third parties. Solicited and unsolicited ratings issued by modefinance are of comparable quality, as the solicitation status has no effect on methodologies used. More comprehensive information on modefinance Corporate Credit Ratings are available at http://cra.modefinance.com/en

The present Corporate Credit Rating is issued on MORE Methodology 2.0 and Rating Methodology 1.0. A comprehensive description of both methodologies, as well as information on modefinance Rating Scale and Mappings, is available at http://cra.modefinance.com/en/methodologies.

For information on historical default rates of modefinance Corporate Credit Ratings please refer to ESMA Central Repository and ESMA European Rating Platform.

modefinance refers to default as a company under bankruptcy, or under liquidation status, or under administration or for which missed payments on a financial obligation are officially recorded.

The quality of the information available on the rated entity and used to determine the present rating was judged by modefinance as satisfactory. Please note that modefinance does not perform any audit activity and is not in a position to guarantee the accuracy of any information used and/or reported in the present document. As such, modefinance can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

The present credit rating was notified to the rated entity in order to identify potential factual errors, as prescribed by the CRA Regulation. No amendments were applied after the notification process.

The rated company has purchased ancillary services from modefinance (preliminary rating). Modefinance guarantees that this purchase of ancillary activities does not constitute any conflict of interest.

The rating action issued by modefinance was performed independently. The analysts, members of the rating team involved in the process, modefinance Srl and its members and shareholders do not have any conflicts of interest in relation to the Rated Entity and/or Related Third Parties. If in the future a potential conflict of interest is identified in relation to the persons reported above, modefinance Ratings will provide the appropriate information and if necessary, the rating will be withdrawn.

The present Credit Rating is an opinion of the general creditworthiness that modefinance issues on the rated entity, and should be relied upon to a limited degree. The issued rating is subject to ongoing monitoring until withdrawal.

Head Analyst - Carmela Santomarco, Rating Analyst
carmela.santomarco@modefinance.com

Responsible for Rating Approval - Pinar Dilek, Rating Process Manager
pinar.dilek@modefinance.com