Endesa (ELE) Q1 2026 earnings summary

Executive summary

• Net profit rose 24.4% year-over-year to €725 million, with EBITDA up 14% to €1.632 billion, driven by strong distribution business under a new regulatory framework, resilient liberalised operations, and efficiency measures.

• Generation output increased 8% year-on-year to 14.2 TWh, with renewables up 18% and hydro output up 13% due to favorable rainfall.

• Free market customer base grew 3% to 6.4 million, including over 300,000 from Energía Colectiva.

• Revenue declined 1.3% to €5.824 billion, mainly due to lower electricity and gas sales, despite higher regulated distribution income.

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

Financial highlights

• EBITDA reached €1.632 billion (+14% YoY); net profit was €725 million (+24.4% YoY); EBIT increased 23.7% to €1.063 billion.

• Revenue: €5.824 billion (-1.3% YoY); gross margin: €2.153 billion (+8.6% YoY).

• Net financial debt increased by €0.5 billion to €10.6 billion (+4.5% YoY); leverage ratio at 109.6%.

• Funds from operations stood at €1.037 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.

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

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