Endesa (ELE) Q2 2025 earnings summary

Executive summary

• Delivered strong operational and financial results in H1 2025, with consolidated net profit up 30.1% to €1,041 million, robust cash generation, and progress on strategic pillars despite market volatility and regulatory uncertainty.

• Achieved significant decarbonization milestones, with 79% of generation mix emission-free and 0.7 GW of new renewable capacity added; Spain's CO2-free output reached 88%.

• Approximately 40% of the €500 million 2025 share buyback program executed, enhancing shareholder returns.

• Demand recovery observed, with new connection requests surging, signaling potential for future growth.

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

Financial highlights

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

• Net income increased 30% year-over-year to €1,041 million; net ordinary income up 35% to €1.04 billion.

• FFO nearly doubled to €2.4 billion, reflecting strong earnings quality and working capital contribution.

• Net financial debt stood at €9,901 million, with average cost of debt declining to 3.4% and liquidity at €6.4 billion.

• Interim dividend of €0.5/share paid in January 2025; final dividend of €0.8177/share paid in July 2025.

Outlook and guidance

• Confident in achieving the top end of full-year 2025 guidance, supported by consistent operational and financial delivery.

• Strategic Plan 2025–2027 targets gross investments of €9.6 billion, with EBITDA forecast for 2027 at €5,600–€5,900 million.

• Capital allocation strategy remains disciplined, with future investment plans contingent on regulatory outcomes.

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

• Long-term vision remains full decarbonisation by 2040 and 100% renewable energy generation.