- 2025 Financial Performance: EBITDA reached EUR 5.8 billion, surpassing guidance, with net ordinary income up 18% to EUR 2.3 billion and a 20% dividend increase to EUR 1.58 per share.
- Investment & Decarbonization: EUR 3.2 billion invested in 2025 (50% YoY growth), with 77% allocated to grid and renewables, achieving 80% emission-free capacity.
- 2026-2028 Strategic Plan: EUR 10.6 billion in investments (52% networks, 30% renewables), targeting EUR 18 billion cumulative EBITDA and 5% annual EPS growth.
- Customer & Market Growth: Free power clients to rise from 6.2 million to 6.7 million by 2028, with 52% free power margin in 2025 and churn management via bundled products.
- Financial Targets & Dividend Policy: EBITDA to grow 10% to EUR 6.2–6.5 billion by 2028, net debt-to-EBITDA at 2.3x, and a 70%+ payout ratio with 4% DPS CAGR.
Financial Highlights
The company's financial strength is evident in its ability to invest EUR 3.2 billion in 2025, 50% above the previous year, with 77% allocated to grid and renewable assets. This investment has contributed to an improvement in the interruption time index and an increase in emission-free installed capacity to 80%. The 2026-2028 strategic plan involves a EUR 10.6 billion investment plan, with 52% allocated to networks and 30% to selective renewable projects.
Strategic Plan and Outlook
The strategic plan aims to support electrification, reinforce grid resilience, and deliver predictable growth. Endesa expects to deliver EUR 18 billion of cumulative EBITDA over the period, with around 85% stemming from regulated or contracted activities. The company's financial strength will enable sustained profitable growth, with EPS set to grow at a steady 5% year-on-year. The plan also includes the development of a hybrid platform for data centers and strengthening the company's position in the customer business.
Valuation and Metrics
To understand what's priced in, we can look at Endesa's valuation metrics. The company's P/E Ratio is 16.27, P/B Ratio is 4.12, and EV/EBITDA is 8.68. The Dividend Yield is 3.84%, and the Free Cash Flow Yield is 7.44%. The Net Debt / EBITDA ratio is 1.98, indicating a manageable debt level. As per the staff, "the company's growth ambition is firmly anchored in highly predictable low-risk activities, with a focus on business and projects that offer long-term visibility, stable cash flows, and resilient returns."
Growth Prospects and Challenges
Endesa's growth prospects are driven by its focus on electrification, grid resilience, and renewable energy. The company's customer base is expected to grow from 6.2 million to 6.7 million free power clients by 2028. However, the company faces challenges, including the expiry of gas contracts, which is expected to result in a decline in the gas business. The company's commitment to reducing emissions, with a goal of reaching close to zero emissions by 2040, is also a key aspect of its growth strategy.