Endesa (ELE) Q1 2026 earnings summary

Executive summary

• EBITDA grew 14% year-on-year to €1,632 million, and net income rose 24.4% to €725 million in Q1 2026, driven by strong distribution business performance under a new regulatory framework and effective grid management.

• Liberalized business showed resilience amid geopolitical tensions and market volatility, with renewables, nuclear, and electrification highlighted as key for energy independence and price stability.

• Revenue declined 1.3% to €5,824 million, mainly due to lower electricity and gas sales, despite higher regulated distribution income.

• Free power customers grew 3% year-on-year to 6.4 million, including 300,000 from Energía Colectiva.

• The strong start to the year supports confirmation of full-year guidance.

Financial highlights

• EBITDA reached €1,632 million (+14% YoY); net income €725 million (+24.4% YoY); EBIT €1,063 million (+23.7% YoY).

• Revenue: €5,824 million (-1.3% YoY); gross margin: €2,153 million (+8.6% YoY).

• Net financial debt increased by €0.5 billion to €10.6 billion (+4.5% YoY); leverage ratio at 109.6%; net financial debt/EBITDA ratio stable at 1.8x.

• Funds from operations stood at €1 billion, with a cash conversion ratio of 65% FFO to EBITDA.

• Dividend payments of €0.5 billion and share buyback outflow of €300 million impacted cash flow.

Outlook and guidance

• Full-year 2026 guidance confirmed: EBITDA €5.8–6.1 billion, net ordinary income €2.3–2.4 billion.

• Guidance supported by resilient generation and supply, efficient hedging, and regulatory certainty in networks.

• Conservative approach to guidance maintained despite strong Q1, with management preferring to wait before revising targets.

• No significant short-term impact expected from energy price volatility due to integrated generation and commercialisation model.

• Strategic Plan 2026-2028 on track, with a minimum payout of 70% of net ordinary profit as dividend policy.