Enel (ENEL) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered solid operational and financial results, with ordinary EBITDA up 3.6–4% year-over-year and net income ranging from €1.86–1.94 billion, supporting progress toward full-year targets and confirming disciplined execution of the strategic plan focused on productivity, capital allocation, and stable portfolio exposure.

• Earnings quality improved due to a higher share of regulated networks and reduced exposure to commodity trading, with EPS for Q1 2026 at €0.20, achieving 27% of the annual target.

• Revenue for Q1 2026 was €20.6 billion, down 6.7% year-over-year, mainly due to lower electricity and gas sales and commodity price effects.

• Installed capacity increased 2.8% year-over-year to 91.9 GW, with renewables up 2.6% and BESS up 20.9%.

• Total electricity production rose 2.8% year-over-year to 51.1 TWh, with consolidated production up 3.5%.

Financial highlights

• Ordinary EBITDA rose to €6.0 billion (+3.6–4% YoY), representing 26% of the 2026 target.

• Net income was €1.86–1.94 billion, with a 32% EBITDA conversion rate.

• FFO stood at €4.4 billion, with a 73% cash conversion rate and FFO/net debt ratio improved to 26%.

• Net financial debt increased 1.1% year-over-year to €57.8 billion.

• Capital expenditure grew 10.9–12% year-over-year to €2.3 billion, focused on grids and renewables.

Outlook and guidance

• 2026 guidance confirmed: ordinary EBITDA €23.1–23.6 billion, net income €7.1–7.3 billion, EPS €0.72–0.74 (+6% YoY), with growth driven by organic performance and share buybacks.

• Strategic Plan 2026–2028 targets €53 billion gross capex, focusing on grids, renewables, and customer solutions.

• Full-year integrated margin (ex-trading) projected above €13.5 billion.

• Networks EBITDA guidance set at €9.6–9.7 billion, with high single-digit growth in Europe and double-digit growth in LATAM.

• The end of regulated tariffs in Italy for non-vulnerable customers is expected to impact customer base and sales mix.