Endesa (ELE) investor relations material

Executive summary

• EBITDA grew 14% year-on-year to €1,632 million, and net profit rose 24.4% to €725 million in Q1 2026, driven by strong distribution business performance under a new regulatory framework and effective grid management.

• Liberalized business showed resilience amid geopolitical tensions and market volatility.

• Renewables and nuclear accounted for 87% of total peninsular generation, supporting energy independence and price stability.

• Revenue declined 1.3% to €5,824 million, mainly due to lower electricity and gas sales, despite higher regulated distribution income.

• Full-year guidance for EBITDA (€5.8–6.1 billion) and net income (€2.3–2.4 billion) confirmed.

Financial highlights

• EBITDA: €1,632 million (+14.0% YoY); net profit: €725 million (+24.4% YoY); net ordinary income: €0.7 billion (+24% YoY).

• Net financial debt increased by €0.5 billion to €10.6 billion (+4.5%), with a stable net financial debt/EBITDA ratio of 1.8x.

• Funds from operations stood at €1 billion, with a cash conversion ratio of 65% FFO/EBITDA.

• Dividend payments of €0.5 billion and share buyback outflow of €300 million impacted cash flow.

• Gross investments decreased 2.5% to €391 million, mainly in distribution (€220 million) and generation (€166 million).

Outlook and guidance

• Full-year 2026 EBITDA guidance confirmed at €5.8–6.1 billion and net ordinary income at €2.3–2.4 billion.

• Guidance maintained despite strong Q1, reflecting a conservative approach and anticipation of future uncertainties.

• Strategic Plan 2026-2028 on track, with a minimum payout of 70% of net ordinary profit as dividend policy.

• No significant short-term impact expected from energy price volatility due to integrated generation and commercialisation model.

• Business model resilience and efficiency plans underpin confidence in meeting targets.