Redeia (REE) Q4 2025 & Strategy update earnings summary

Executive summary

• Achieved record TSO investment of €1,551.5 million in 2025, with total group investment at €1,626.2 million, supporting grid expansion and energy transition, nearly quadrupling the investment rate in four years.

• Revenue increased by 4.1% year-over-year to €1,659.5 million, driven by regulated business in Spain and new remuneration rates.

• Net profit attributable to the parent rose 37.2% to €505.6 million, mainly due to the absence of prior year impairment from the Hispasat divestment.

• Completed the sale of Hispasat for €725 million, strengthening the financial position for future investments.

• Surpassed all objectives of the 2021-2025 strategic plan, positioning for the 2026-2029 plan focused on energy transition and network modernization.

Financial highlights

• EBITDA grew 4.0% to €1,258.3 million in 2025, with 89% from regulated business; EBITDA margin at 75.8%.

• Net financial debt at year-end was €5,474.2 million, up €104.4 million from 2024, contained by strong cash generation and asset sales.

• Operating expenses rose 6.8% due to increased activity, personnel, and maintenance costs.

• Dividend proposal: €0.80 per share for 2025, with €0.20 already paid as interim dividend.

Outlook and guidance

• Strategic plan 2026-2029 targets over €6.5 billion in total investment, with over 90% allocated to TSO and €6 billion for domestic transport.

• EBITDA expected to grow at >3% annually; regulated business to remain over 90% of EBITDA.

• Dividend policy set for 2% annual growth, reaching €0.87 per share by 2029.

• RAB projected to grow over 35% to €12 billion by 2029, and up to €14.4 billion including work in progress.

• No capital increase required to finance the plan; funding sourced from FFO, subsidies, hybrids, and net debt.