Endesa (ELE) investor relations material

Executive summary

• EBITDA rose 20% year-on-year to €3,240 million, with net profit up 41% to €1,470 million, driven by strong growth across all business lines, higher regulated business contribution, and operational efficiencies.

• Regulated businesses now contribute nearly 50% of total EBITDA, enhancing earnings quality and resilience.

• Over 60% of the full-year EPS target was achieved in H1, prompting an upgrade in 2026 EPS guidance to €2.4/share.

• Capex increased 38% year-on-year, mainly focused on Networks to support future growth.

Financial highlights

• Revenue for H1 2026 was €10,995 million, up 1.1% year-on-year; gross margin increased 12% to €4,253 million.

• EBIT increased by 31.4% to €2,094 million; ordinary net profit rose 42.2% to €1,480 million.

• Net financial debt increased slightly to €10,305 million, with net financial debt/EBITDA ratio stable at 1.6x.

• Fixed costs decreased by 8% year-on-year, offsetting inflation and business growth costs.

• Effective tax rate stood at around 24%.

Outlook and guidance

• Full-year ordinary net profit forecast raised to above €2,400 million, exceeding previous guidance.

• Free power margin expected to remain in line with H1 levels; gas margin to moderate in H2 due to seasonality.

• Limited upside from higher wholesale power prices due to full hedging.

• Strategy remains unchanged, with a new investment plan to be communicated in early 2027.