Naturgy Energy Group (NTGY) H1 2026 earnings summary

Executive summary

• Achieved 4.5%–6% year-over-year earnings growth in H1 2026, with EBITDA at €2,975m and net income at €1,215m, reflecting operational resilience and a diversified, integrated model across gas and power value chains.

• Upgraded 2026 guidance: EBITDA above €5.5bn and net income above €2.1bn, both ahead of consensus, supported by a disciplined capital allocation approach and strong operational performance.

• Cleared shareholder overhang, increased free float to 46%, and simplified governance, enhancing agility and aligning shareholders for long-term value growth.

• Over 50% of EBITDA from regulated networks, with leading market positions and a focus on regulated, hard currency geographies.

• Track record of financial discipline and operational excellence underpins credibility for value-accretive growth.

Financial highlights

• H1 2026 EBITDA reached €2,975m, up from €2,848m in H1 2025 (+4.5% YoY); net income rose to €1,215m from €1,147m (+5.9% YoY).

• Free cash flow after minorities was €1,259m, supporting dividend payments and net debt reduction.

• Net debt reduced to €11,745m from €12,317m, with a one-off €400m Sonatrach payment expected to increase net debt in H2.

• Dividend of €0.60/share approved, payable July 29, 2026; 2025 dividend was €1.77/share (+10.6% YoY).

• Net sales grew 1.4% YoY to €10,097m; EBIT up 7.5% to €2,110m.

Outlook and guidance

• Upgraded 2026 guidance: EBITDA above €5.5bn, net income above €2.1bn, net debt around €13bn, DPS €1.8 (6.2–6.3% yield).

• 2027 guidance reaffirmed: €5.3bn EBITDA and €1.9bn net profit, assuming a worst-case Yamal scenario.

• Management sees more upside than downside to 2027 targets.

• New strategic plan to be presented in 2027, with further updates possible at Q3 2026 results.

• Market volatility and upside price risk expected, with tight LNG markets and potential gas shortages in winter 2026-27.