Endesa profit jumps 41% to 1,470 million euros, raises 2026 guidance above 2.4 billion

First-half earnings

Endesa reported a net profit of 1,470 million euros for the first half of 2026, a 41.2% increase over the same period last year. Revenues reached 10,995 million euros, up 1.1%, while EBITDA increased 20% to 3,240 million euros. Ordinary net profit, excluding non-recurring items, rose 42.2% to 1,480 million euros. The company attributed the strong performance to growth across all business lines and a greater contribution from regulated activities, which now account for nearly half of EBITDA.

This result, in a scenario of continuous volatility due to the unstable global geopolitical situation, has been possible thanks to the growth experienced by the company in all businesses and the greater contribution of regulated activities, also supported by certain positive non-recurring impacts.

Guidance upgrade

Endesa raised its full-year ordinary net profit target to above 2,400 million euros, exceeding the previous range of 2,300–2,400 million euros communicated in February. The company said it had already achieved more than 60% of its annual target during the first half. The upgrade reflects confidence that regulated businesses will continue to deliver strong returns.

This upward revision is a key sign of the strength of both our business model and our ability to transform solid operational execution into greater profitability for our shareholders.

Network-focused strategy

The distribution business is now the cornerstone of Endesa's earnings. Networks contributed 1,200 million euros, or 36% of total EBITDA, a 24% increase year-on-year. Investment in distribution surged 38% to 600 million euros, representing 52% of total gross investment of over 1,100 million euros during the first half. Total investments rose 14%. Gianni Armani, the new CEO, highlighted this shift as part of a strategy to reduce exposure to volatile wholesale markets. Regulated activities as a whole now make up about 50% of EBITDA, up from roughly 40% a year earlier.

Regulatory tailwind

Endesa welcomed a new Royal Decree approved by the Spanish government on 28 July 2026, which raises the investment ceiling for electricity distribution networks. The company said the measure would allow it to accelerate grid expansion to meet growing demand from industrial electrification and data centres. Endesa regards network capacity as the main bottleneck for Spain's electrification push and intends to reinforce infrastructure accordingly.

Financial position and renewables

Endesa generated 2,300 million euros of free cash flow in the first half. Net financial debt stood at 10,300 million euros at end-June, up from 10,100 million at the close of 2025. The cost of debt averaged 3.2%, while the net debt-to-EBITDA ratio fell to 1.6 times, a level the company views as comfortable to support rising investment plans. Renewable generation increased 11% to 11 TWh, driven by higher installed capacity.