Enel (ENEL) CMD 2026 summary

Strategic vision and market context

• Achieved all prior strategic targets, completing asset portfolio turnaround and restoring financial flexibility, with market capitalization up nearly 50% during the current mandate.

• New plan leverages long-term global power demand growth, driven by data centers, AI, electric mobility, and industrial recovery, with rapid investment deployment in accelerating markets.

• Industrial strategy prioritizes brownfield and greenfield renewable investments for faster time to market and value creation, capitalizing on asset rotation trends and financial flexibility.

• Plan incorporates the full impact of the Italian Energy Decree, with future news expected to be positive or neutral.

• Focus on balance sheet flexibility, selective capital allocation, and risk reduction to support growth and value creation over 2026-28.

Capital allocation and investment plan

• €53 billion in investments planned for 2026-2028, a €10 billion increase over the previous plan, with over €26 billion each for renewables and grids, and 55% of grid investment in Italy.

• Shift from debt reduction to growth, maintaining leverage below sector average (targeting 3.0x Net Debt/EBITDA), and allocating flexibility to brownfield, selective greenfield, and shareholder remuneration.

• Over 90% of cumulative EBITDA for 2026-28 is regulated or contracted, providing high visibility and stability.

• Efficiency plan front-loaded, targeting a 25% increase over the 2022 baseline and €700 million in additional efficiencies by 2028, leveraging AI and digitalization.

• Share buyback program expanded to €3.5 billion, with up to €1 billion for a new tranche.

Financial guidance and performance outlook

• EPS expected to grow at a 6% CAGR from 2025 to 2028, reaching €0.80–€0.82 by 2028, with DPS growth aligned.

• CapEx plan increased from €37 billion (2022) to €53 billion, enabled by portfolio reshaping and productivity improvements.

• Growth acceleration driven by €15 billion of releverage, with €10 billion for growth CapEx and €3.5 billion for share buybacks.

• Over 90% of €74 billion cumulative ordinary EBITDA (2026-2028) expected from regulated or contracted activities.

• By 2030, installed renewable capacity and grids’ RAB expected to grow at 5% and 6% CAGR, respectively.