Endesa (ELE) Q4 2024 earnings summary

Executive summary

• EBITDA rose 40% to €5.293 billion in 2024, with net income up 2.5 times year-over-year, exceeding revised targets and reflecting normalized energy markets.

• Net profit reached €1.888 billion, up 154% year-over-year, with all business segments contributing positively.

• Dividend per share increased 32% to €1.32, 10% above initial target, yielding over 6%.

• Strong cash generation and reduced debt support accelerated investment aligned with energy transition goals.

• Market dynamics included a 28% drop in Iberian wholesale electricity prices, driven by increased renewables and volatility.

Financial highlights

• Revenue declined 16% to €21.3 billion, but gross margin rose 23% to €7.345 billion.

• EBITDA reached €5.3 billion, up 40% year-over-year; EBIT up 87% to €3.071 billion.

• Net ordinary income doubled to €1.993 billion; net attributable income up 154% to €1.888 billion.

• FFO reached €3.6 billion, with FFO/Net Debt at 38%; adjusted FFO improved to €4.1 billion.

• Net financial debt improved by 11% to €9.3 billion; net debt/EBITDA ratio at 1.8x.

Outlook and guidance

• 2025 EBITDA guidance set at €5.4–5.6 billion, net income at €1.9–2.0 billion.

• Dividend policy for 2025–27 guarantees a minimum €1.0/share and 70% payout.

• Investment acceleration planned, contingent on regulatory developments for grid remuneration.

• Company is fully hedged for gas and power in 2025, with 2026 also largely hedged.

• Further EBITDA growth expected in 2025, mainly from gas business normalization.