Endesa (ELE) Q1 2025 earnings summary

Executive summary

• EBITDA increased 33% year-over-year to €1.4 billion, driven by strong liberalized business performance and the absence of the temporary energy levy.

• Net income nearly doubled to €600 million, reflecting robust operational results and improved cash generation.

• Completed acquisition of hydro assets (626 MW) for €959 million, strengthening renewable capacity.

• Launched a €2 billion share buyback program through 2027, with €500 million already approved or purchased.

• All AGM proposals approved with 86% quorum.

Financial highlights

• Revenue rose 6.3% year-over-year to €5,899 million; EBITDA up 33% to €1.4 billion; EBIT up 50% to €859 million.

• Net financial debt increased 9% to €10.2 billion, mainly due to hydro asset acquisition.

• Free cash flow from operations surged to €1.2 billion, supporting investments and dividends.

• Gross investments totaled €401 million, down 7% year-over-year.

• Cost of debt decreased to 3.4%-3.6% due to lower interest rates.

Outlook and guidance

• On track to achieve full-year 2025 guidance, with management expecting gas margin normalization.

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

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

• No significant deviations from strategic objectives are foreseen.

• Financial costs for the year expected to align with last year at around €500 million.