Endesa (ELE) Q4 2025 & CMD earnings summary

Executive summary

• 2025 results exceeded guidance, with EBITDA at €5.8 billion (up 9%) and net ordinary income at €2.35 billion (up 18% year-on-year), setting a higher base for the 2026–2028 plan.

• Record €10.6 billion investment plan for 2026–2028, with over 50% allocated to networks and a strong focus on renewables and electrification.

• Dividend proposal of €1.58 per share, up 20–22% year-on-year, with a yield above 5%, and a €2 billion share buyback program underway.

• Strategic initiatives include alliances, digital transformation, and a commitment to net zero emissions by 2040.

Financial highlights

• EBITDA reached €5.8 billion (+9% YoY), net ordinary income €2.35 billion (+18% YoY), and net attributable income €2.2 billion (+16% YoY).

• Dividend per share for 2025 proposed at €1.58 (+20–22% YoY), with a dividend yield above 5%.

• FFO reached €4.1 billion, with a 70% FFO/EBITDA cash conversion ratio.

• Net financial debt increased to €10.1 billion, leverage ratio at 1.8x, and average cost of debt declined to 3.3%.

• FY 2025 revenue was €21.42 billion, up 0.5% year-on-year.

Outlook and guidance

• EBITDA expected to grow at 4% CAGR, reaching €6.2–6.5 billion by 2028; net ordinary income targeted at €2.5–2.6 billion by 2028.

• EPS projected to grow at 4–5% CAGR through 2028; dividend policy guarantees at least 70% payout with DPS growing at 4% CAGR.

• Net debt/EBITDA to rise from 1.8x to 2.3x by 2028, reflecting increased investment.