Repsol (REP) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 and H1 2026 results amid volatile commodity markets and geopolitical disruptions, including conflicts in Iran, Ukraine, and the Strait of Hormuz, impacting global oil supply and refining capacity.

• Adjusted net income rose sharply, reaching €2.711 billion in H1 2026 (+135% YoY), with Q2 adjusted net income at €1.8 billion, driven by strong industrial and upstream performance.

• Achieved first oil at Pikka in Alaska, marking a significant milestone for U.S. growth, with plateau production expected in Q3.

• Strategic execution included asset rotation in Spain and the U.S., major renewable asset sales, and new agreements in Venezuela.

• Shareholder returns increased, with dividends up 8% and expanded share buyback programs totaling up to €850 million for 2026.

Financial highlights

• Q2 adjusted net income: €1.8 billion, up over €1 billion year-on-year; H1 adjusted net income: €2.711 billion (+135% YoY); net income: €2.201 billion (+265% YoY).

• Adjusted EBITDA: €6.135 billion in H1 2026; Q2 adjusted EBITDA: €3.522 billion.

• Cash flow from operations: €2.977 billion in H1 2026 (+€391 million YoY); Q2 CFFO ex-WC: €1.8 billion, up 46% YoY.

• Net debt at Q2 end: €3.667 billion, down €1.1 billion from March.

• Share price rose 38.2% in H1 2026, outperforming sector peers.

Outlook and guidance

• Full-year 2026 production expected at the high end of 560,000–570,000 boe/d; production exceeded 580,000 boe/d in early July.

• Refining margins expected to remain strong through 2027, supported by inventory replenishment and resilient demand.

• Shareholder distributions targeted at 30–40% of cash flow from operations, with a third buyback program to be announced in October.

• Full-year net CapEx projected at €2.7 billion; organic investments of €8.5–10 billion planned for 2026–2028.