Enagás (ENG) Q4 2025 earnings summary

Executive summary

• 2025 marked a year of consolidation and key milestones, with rapid progress in supply security, cost control, and green hydrogen infrastructure, exceeding budget targets and advancing the 2025-2030 Strategic Plan.

• The Spanish gas system maintained 100% supply guarantee, played a key role in restoring the electricity grid after a blackout, and saw a 7.4% increase in total demand transported, strengthening Spain's position as a strategic gas entry point for Europe.

• Significant milestones in green hydrogen were achieved, with major funding, regulatory alignment, and progress on projects like H2med and the Spanish Hydrogen Backbone.

• Arbitration in Peru resulted in a $303 million award, generating a net capital gain of EUR 41.2 million, though cash inflow is conservatively not expected before 2030 and enforcement is provisionally suspended pending annulment proceedings.

• Maintained leadership in ESG ratings, with progress toward Net Zero by 2040 and advances in gender equality.

Financial highlights

• Total revenue for 2025 reached €976.8 million, up 7.0% year-over-year, with core after-tax profit at EUR 266.3 million and EBITDA at EUR 675.7 million, both above budget.

• Net profit including one-offs was EUR 339.1 million, with recurring net profit at EUR 266.3 million.

• Net debt stood at EUR 2.475 billion, with over 80% at fixed rates, a financial cost of 2.1%, and FFO/net debt at 25.7%.

• Subsidiaries and affiliates contributed EUR 155.3 million to EBITDA and €164 million to cash flow.

• Asset rotation, including sales and acquisitions such as Tallgrass Energy divestment and Axent acquisition, generated notable capital gains.

Outlook and guidance

• 2026 targets: core after-tax profit of ~EUR 235 million, EBITDA of EUR 620 million, net debt around EUR 2.4 billion, FFO/net debt ratio above 15%, and a continued EUR 1 per share dividend commitment.

• Net investments planned at EUR 225 million, with a focus on hydrogen and regulated assets.

• Conservative assumptions exclude early cash inflows from Peru and anticipate regulatory stability.