Repsol (REP) Q1 2026 earnings summary

Executive summary

• Achieved a solid start to the 2026–2028 strategic roadmap, emphasizing cash flow growth, higher shareholder returns, and disciplined capital allocation while maintaining a strong balance sheet.

• Maintained stable and reliable operations despite heightened commodity volatility and geopolitical tensions, with no material exposure to the Middle East.

• Advanced key upstream projects, including the TotalEnergies JV in the UK, production start at Lapa Southwest (Brazil), and progress in Venezuela and Alaska.

• Strategic investments and operational flexibility in refining and renewables supported resilience and growth.

• Focused on ensuring energy supply continuity, allocating €1.2 billion to increase inventories and applying €35 million in additional fuel discounts in Spain.

Financial highlights

• Adjusted net income for Q1 2026 was €873 million, up 57% year-over-year; net income was €929 million, up 153.8% year-over-year, including a €593 million inventory effect.

• Adjusted EBITDA rose to €2,613 million, up 110% year-over-year.

• Cash flow from operations reached €1,042 million, up 1.8% year-over-year; free cash flow was €262 million.

• Net debt stood at €4.8 billion, a €0.3 billion increase from December 2025.

• Tax contribution was €3.35 billion in Q1, with 73% generated in Spain.

Outlook and guidance

• Full-year production guidance remains at 560,000–570,000 boe/d for 2026, with a target of 580,000–600,000 boe/d by 2028.

• Cash flow from operations guidance for 2026 is €5.5–6 billion; operating cash flow expected to reach €6.5 billion by 2028.

• Shareholder remuneration for 2026 to total €1.051 per share, up 8% year-over-year, with a 30–40% distribution target of cash flow from operations and ongoing share buybacks.

• Net capex expected at €2.5–2.7 billion for 2026, with an investment plan of €8.5–10 billion through 2028, 30% dedicated to low-carbon projects.

• Kerosene production to increase by 15–20% ahead of summer to support tourism.