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1. Company Snapshot

1.a. Company Description

Enagás, S.A. engages in the development, operation, and maintenance of gas infrastructures in Spain, Mexico, Chile, Peru, Albania, Greece, Italy, and the United States.It operates through Gas transmission, Regasification, and Storage of Gas segments.The company provides gas transmission services through primary and secondary transmission pipelines; natural gas regasification services; and operates underground storage facilities.


It is also involved in the operation and technical management of the basic network and secondary transportation network for natural gas.In addition, the company engages in the financial management activities; development of industrial projects and activities relating to LNG terminals, and hydrogen production and transport infrastructures; development and implementation of facilities for the supply of natural gas as fuel for vehicles, including its design, construction, and maintenance; and provision of commercial services for the purpose of enhancing the daily operational management of gas shippers.Further, it is involved in the development and integrated management of energy projects for the production of renewable gases from organic matter; development of projects to promote the role of renewable gases in the energy transition; and production of solar electric energy.


The company operates approximately 12,000 kilometers of gas pipelines, 20 compressor stations, and 6 international connections.Enagás, S.A. was founded in 1972 and is headquartered in Madrid, Spain.

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1.b. Last Insights on ENG

Enagás, S.A.'s recent performance was negatively impacted by regulatory uncertainty and challenges in asset rotation. The company's Q3 2024 earnings call highlighted a 7.8% increase in core after-tax profit, but this growth was tempered by the need to navigate complex regulatory frameworks. Additionally, Enagás' strategic shift towards green hydrogen infrastructure, while a positive long-term development, may have contributed to short-term uncertainty and volatility. The company's focus on divestments, as seen in Q2 2024, may also have created some uncertainty among investors.

1.c. Company Highlights

2. Enagás' 2025 Earnings: A Strong Performance Amidst a Challenging Landscape

Enagás reported a core after-tax profit of EUR 266.3 million for 2025, exceeding budget targets, with an EBITDA of EUR 675.7 million. The company's EPS came in at EUR 0.538, beating analyst estimates. Revenue growth was driven by a 7.4% increase in total demand transported by the Spanish gas system, with a significant 33.4% rise in gas demand for electricity generation. The company's financial performance was also bolstered by asset rotation operations, including the sale of its stake in the Soto La Marina Compression Station and the acquisition of AXENT's share capital.

Publication Date: Feb -18

📋 Highlights
  • 2025 Financial Overperformance:: Core after-tax profit reached €266.3M, exceeding budget targets, with EBITDA of €675.7M driven by asset rotation and strong performance from subsidiaries like Trans Adriatic Pipeline.
  • Gas Supply Resilience:: Achieved 100% supply guarantee in 2025, with Spanish gas demand rising 7.4%, including a 33.4% surge in electricity generation usage, underscoring gas infrastructure’s critical role in energy security.
  • Hydrogen Infrastructure Momentum:: €49M allocated to hydrogen projects in 2026, targeting 650MW of new projects for Final Investment Decision (FID), with Spain’s total hydrogen capacity expected to reach 1GW, supported by €3.1B in public funding.
  • Regulatory and Cost Efficiency:: Tolls for domestic consumers fell 42% and industrial tolls 70% from 2021–2024, while Enagás maintained Europe’s most efficient TSO status per the European Council of Energy Regulators.
  • 2026 Strategic Targets:: Aims for €235M core after-tax profit, €620M EBITDA, and €2.4B net debt, with a 6.5% return rate and €165M annual EBITDA contribution from affiliates post-2026.

Operational Highlights

The Spanish gas system demonstrated its resilience in the face of extreme weather phenomena, maintaining a 100% supply guarantee and availability. Enagás' robust financial health enabled a 42% decrease in tolls for domestic consumers and a 70% decrease for industry between 2021 and 2024. The company's subsidiaries, such as the Trans Adriatic Pipeline and DESFA, also contributed significantly to its performance.

Outlook and Guidance

For 2026, Enagás expects to launch the FEED phase for BarMar, complete the environmental studies and conceptual engineering for the Barcelona Compression Station, and make progress on the regulatory and technical fronts. The company is targeting a core after-tax profit of approximately EUR 235 million, net debt at around EUR 2.4 billion, and an EBITDA of EUR 620 million. Enagás reiterated its commitment to a EUR 1 per share dividend, representing a dividend yield of 6.07%.

Valuation and Metrics

Enagás' current valuation metrics indicate a P/E Ratio of 14.92, P/B Ratio of 1.74, and EV/EBITDA of 8.33. The company's ROE stands at 11.78%, while its ROIC is 3.24%. With a net debt to EBITDA ratio of 2.88, Enagás' financial leverage is moderate. Analysts estimate next year's revenue growth at 3.0%, indicating a stable outlook for the company.

Hydrogen Infrastructure Development

Enagás is making significant strides in hydrogen infrastructure development, with EUR 49 million allocated to hydrogen infrastructure investments in 2026. The company expects at least 650 megawatts of new hydrogen projects to reach FID in 2026, bringing the total to 1 gigawatt in Spain. The Spanish Government has awarded EUR 3.1 billion in public funding for hydrogen projects, with some projects already under construction.

3. NewsRoom

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Enagás selects Emerson for digital management of Spain’s gas grid

Feb -18

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Enagas SA (ENGGF) Full Year 2025 Earnings Call Highlights: Strong Financial Performance Amid ...

Feb -17

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[Latest] Global Gas Pipeline Infrastructure Market Size/Share Worth USD 7178.98 Billion by 2034 at a 9.26% CAGR: Custom Market Insights (Analysis, Outlook, Leaders, Report, Trends, Forecast, Segmentation, Growth Rate, Value, SWOT Analysis)

Oct -06

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.11%)

6. Segments

Infrastructures

Expected Growth: 6.15%

Enagás, S.A.'s 6.15% growth in infrastructure is driven by increasing demand for natural gas, strategic expansion into new markets, and investments in renewable energy integration. Additionally, the company's focus on operational efficiency, cost savings, and regulatory support contribute to its growth momentum.

Technical Management of the System

Expected Growth: 4.83%

Enagás, S.A.'s 4.83% growth in Technical Management of the System is driven by increasing demand for natural gas, strategic infrastructure investments, and efficient operational management. Additionally, the company's focus on innovation, digitalization, and cost optimization have contributed to this growth.

Other

Expected Growth: 7.12%

Enagás, S.A.'s 7.12% growth is driven by increasing demand for natural gas in Spain, expansion into new markets, and strategic investments in infrastructure and renewable energy. Additionally, the company's diversified revenue streams, including transportation, regasification, and storage, contribute to its growth momentum.

7. Detailed Products

Natural Gas Transportation

Enagás, S.A. operates a network of pipelines that transport natural gas from production and import points to consumption points, providing a safe and reliable service to its customers.

Natural Gas Storage

Enagás, S.A. manages and operates underground natural gas storage facilities, providing a strategic reserve of natural gas to ensure supply security and flexibility.

LNG Regasification

Enagás, S.A. operates liquefied natural gas (LNG) regasification terminals, allowing for the import and distribution of LNG to meet peak demand.

Gas Infrastructure Management

Enagás, S.A. provides management and operation services for gas infrastructure, including pipeline maintenance and repair.

8. Enagás, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Enagás, S.A. is medium due to the availability of alternative energy sources such as renewable energy and liquefied natural gas (LNG).

Bargaining Power Of Customers

The bargaining power of customers for Enagás, S.A. is low due to the company's dominant position in the Spanish natural gas market and the lack of alternative suppliers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Enagás, S.A. is medium due to the company's dependence on a few large suppliers of natural gas and the potential for price fluctuations.

Threat Of New Entrants

The threat of new entrants for Enagás, S.A. is low due to the high barriers to entry in the natural gas market, including the need for significant infrastructure investments and regulatory approvals.

Intensity Of Rivalry

The intensity of rivalry for Enagás, S.A. is high due to the competitive nature of the natural gas market and the presence of several large players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 56.47%
Debt Cost 4.63%
Equity Weight 43.53%
Equity Cost 6.73%
WACC 5.55%
Leverage 129.74%

11. Quality Control: Enagás, S.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Italgas

A-Score: 7.0/10

Value: 4.6

Growth: 4.0

Quality: 5.1

Yield: 8.1

Momentum: 10.0

Volatility: 10.0

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AltaGas

A-Score: 6.9/10

Value: 4.9

Growth: 6.1

Quality: 3.6

Yield: 7.0

Momentum: 9.5

Volatility: 10.0

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Snam

A-Score: 6.7/10

Value: 4.2

Growth: 3.7

Quality: 5.3

Yield: 8.8

Momentum: 8.0

Volatility: 10.0

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EVN

A-Score: 6.3/10

Value: 5.7

Growth: 6.2

Quality: 4.8

Yield: 5.6

Momentum: 6.0

Volatility: 9.3

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Enagás

A-Score: 6.1/10

Value: 4.3

Growth: 1.1

Quality: 4.8

Yield: 10.0

Momentum: 6.5

Volatility: 10.0

1-Year Total Return ->

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Centrica

A-Score: 5.8/10

Value: 6.4

Growth: 5.4

Quality: 3.5

Yield: 3.1

Momentum: 8.5

Volatility: 8.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

14.99$

Current Price

14.99$

Potential

-0.00%

Expected Cash-Flows