Endesa (ELE) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 rose 30.1% year-over-year to €1,041 million, driven by higher revenues, strong liberalised business performance, and the removal of the temporary energy tax.

• EBITDA increased 12.3% to €2,711 million, with free cash flow doubling to €2.4 billion, supporting organic investments and shareholder returns.

• Revenue grew 4.5% year-over-year to €10,880 million, with growth in both electricity and gas sales.

• Share buyback program executed 40% by end of June, with up to 75% completed by end of July.

• The period was marked by the 28 April blackout, leading to increased market volatility and a focus on grid resilience.

Financial highlights

• EBITDA rose 12.3% year-over-year to €2,711 million, driven by improved margins and the absence of the extraordinary levy.

• Net profit increased 30.1% to €1,041 million; net ordinary income up 35% to €1.04 billion.

• Revenue reached €10,880 million (+4.5% year-over-year); gross margin up 11% to €3,812 million.

• Free cash flow doubled to €2.4 billion; operating cash flow nearly doubled to €2,356 million.

• Net financial debt stood at €9.9 billion (+6.5% since Dec 2024), with average cost of debt at 3.4%.

Outlook and guidance

• Confident in achieving the top end of 2025 guidance, with capital allocation decisions dependent on regulatory improvements.

• Strategic Plan 2025–2027 targets €9.6 billion in gross investments and a minimum €1/share dividend.

• Management warns that the CNMC's proposed remuneration model for 2026–2031 could limit network investment and threaten energy transition objectives.

• Expectation of a fairer regulatory framework post-consultation to support necessary grid investments.

• CMD (Capital Markets Day) expected by 1Q2026.