Enel (ENEL) Q1 2025 earnings summary

Executive summary

• Achieved record quarterly results with seven consecutive quarters of organic growth, a 2% year-over-year increase in both EBITDA and net income, and a 13.6% rise in revenue to €22,074 million, despite lower sales volumes and asset disposals.

• Shareholder returns improved, with a 33% share price increase since CEO appointment, total shareholder return at 52%, and over €9 billion in dividends paid since 2023.

• Strategic focus on value-accretive capital allocation, risk reduction, and financial flexibility, with 90% of EBITDA secured over the planned period and a business model resilient to market volatility.

• Sustainability progress with nearly 70 GW of emission-free capacity, representing 84% of total production, and a 4.4% increase in total installed capacity to 90.7 GW, driven by renewables and battery storage.

• Ordinary EBITDA fell 2% to €5,974 million due to scope changes and lower retail margins in Italy, but adjusted EBITDA rose 1.4% excluding non-recurring items.

Financial highlights

• Q1 EBITDA reached nearly €6 billion, up €100 million year-over-year on a like-for-like basis; net income at €2 billion, up 2% year-over-year; reported net income also €2 billion, up 10% on a like-for-like basis.

• Revenue grew 13.6% to €22,074 million, while net financial debt stood at €56,011 million, with a debt/equity ratio of 1.06.

• FFO at €4.5 billion, with FFO minus CapEx positive by €1 billion; capital expenditure decreased 19.8% to €2,074 million, focused on grids and renewables.

• Dividends paid in Q1 totaled €2.5 billion, with a dividend yield at 6%.

• Net debt/EBITDA ratio improved to 2.5x from 2.7x last year.

Outlook and guidance

• 2025 guidance confirmed, with full-year EBITDA target 30% higher than 2022 and ordinary EBITDA guidance of €22.9–23.1 billion.

• Strategic Plan 2025–2027 targets €43 billion gross capex, with €26 billion for grids and €12 billion for renewables, aiming for 12 GW new capacity and 76 GW renewables by 2027.

• Dividend policy: minimum €0.46/share annually, with potential payout up to 70% of net ordinary income.

• Share buyback program ongoing in Spain and pending approval for Italy.

• Investment plan prioritizes network quality, resiliency, and additional renewable capacity, with 80% of network investments in Europe.