Endesa (ELE) Q1 2025 earnings summary

Executive summary

• EBITDA increased 32.6% to €1,431 million, with net profit up 99.7% to €583 million, driven by strong deregulated business performance, repeal of the 1.2% energy tax, and robust cash generation.

• Revenue rose 6.3% year-over-year to €5,899 million, reflecting higher contribution margins and cost control.

• Completed acquisition of 626 MW hydro assets for €959 million–€1 billion, strengthening renewable capacity.

• Launched a share buyback program of up to €2 billion through 2027, with €500 million already executed.

• All AGM proposals approved with 86% quorum.

Financial highlights

• EBITDA rose 32.6% to €1,431 million (+33% YoY); net income nearly doubled to €583 million; EBIT up 49.9% to €859 million.

• Free cash flow from operations surged to €1,243 million (+644.3% YoY).

• Net financial debt increased 9.3% to €10,159 million, mainly due to hydro asset acquisition and dividend payments.

• Gross investments for the quarter were €401 million, focused on renewables and grid digitalization.

• Revenue reached €5,899 million (+6.3% YoY); gross margin increased 21% to €1.98 billion.

Outlook and guidance

• Management remains confident in achieving full-year 2025 guidance, with gas margin expected to normalize after a strong Q1.

• Net debt projected slightly over €11 billion by year-end, factoring in the buyback program.

• 98% of 2025 nuclear, hydro, and renewable generation pre-sold; 80% for 2026 and 55% for 2027.

• Targeting a 70% payout on net ordinary income with a minimum dividend of €1 per share annually.

• No significant deviations from strategic objectives are foreseen as of the report date.