Endesa S.a Stock Earnings Reports

Endesa delivered a strong first half of 2026: EBITDA rose 20% to EUR 3.2bn and net income increased 41% to EUR 1.5bn, with EPS up 46% to EUR 1.44. Regulated activities (networks and non‑mainland generation) now account for roughly half of EBITDA, improving earnings quality and resilience. The company accelerated investments (gross CapEx +14% to EUR 1.1bn), with networks >50% of CapEx and a rising regulated asset base (EUR 11.4bn). Cash generation remained robust (FFO conversion ~70%, FFO/Net debt ~38%), while net debt/EBITDA stayed modest at 1.6x. Management upgraded full‑year guidance and now expects net ordinary income to exceed EUR 2.4bn. The board is executing a EUR 2bn share buyback ( >50% completed by June) and started a new EUR 500m tranche in July. Key drivers: favorable regulatory changes (including a Royal Decree increasing distribution investment cap), improved retail customer quality and efficiency savings (fixed costs -8%), strong hydro/pumped storage performance, and high hedging levels limiting exposure to wholesale price swings. Management noted ~EUR 0.2bn of positive non‑recurring items in H1 and reiterated the strategic focus on grid investments, storage/ hybrid renewables, and selective M&A in renewables; no material financial impact is assumed from the Spanish blackout administrative proceedings at this stage.