Enel (ENEL) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid operational and financial results, with EBITDA and net income both up 4% year-over-year, confirming disciplined execution of the strategic plan focused on productivity, capital allocation, and stable portfolio exposure.

• Earnings quality improved due to a higher share of regulated networks and reduced exposure to commodity trading, supporting progress toward full-year targets.

• EPS for Q1 2026 reached €0.20, achieving 27% of the annual target, supported by organic business evolution and share buybacks.

• Total installed capacity increased 2.8% year-over-year to 91.9 GW, with renewables up 2.6% and BESS up 20.9%.

• Total electricity production rose 2.8% year-over-year to 51.1 TWh, with consolidated production up 3.5%.

Financial highlights

• Ordinary EBITDA rose 4% year-over-year to €6.0bn, representing 26% of the 2026 target.

• Net income reached nearly €2 billion, up 4% year-over-year, with a 32% EBITDA conversion rate.

• FFO stood at €4.4 billion, with a 73% cash conversion rate and FFO/net debt ratio improved to 26%.

• Net financial debt stood at €57.8bn, up 1.1% year-over-year, with leverage at 2.5x, below the sector average.

• Revenues for Q1 2026 totaled €20.6bn, down from €22.1bn in Q1 2025.

Outlook and guidance

• FY 2026 guidance confirmed: EBITDA €23.1–23.6bn, net income €7.1–7.3bn, EPS €0.72–0.74 (+6% YoY).

• Full-year integrated margin (ex-trading) projected above €13.5 billion, with improved earnings visibility from a growing share of regulated activities.

• Networks EBITDA guidance set at €9.6–9.7 billion, with high single-digit growth in Europe and double-digit growth in LATAM.

• The end of regulated tariffs in Italy for non-vulnerable customers is expected to impact customer base and sales mix.