Endesa raises ordinary profit 22% to €2.125 billion in nine months
Key Facts
Endesa posted net profit of €1.962 billion in the first nine months of 2026, up 15% from the same period last year, according to results announced by the company on October 28. Ordinary net profit was €2.125 billion, up 22% year on year. Revenue also rose 9% to €17.389 billion, from €15.948 billion a year earlier. EBITDA increased to €4.577 billion from €4.224 billion, a rise of 8%. The results come as the company reaffirmed its forecast for ordinary net profit to exceed €2.4 billion in 2026.
The earnings mix reflected a greater contribution from regulated activities to the company’s performance, with networks and generation outside the Iberian Peninsula accounting for about 50% of EBITDA, compared with about 40% in the year-earlier period. Distribution EBITDA was €1.747 billion, up 24.8% year on year. The company attributed the improvement to the new regulatory framework that took effect on January 1 and to settlements for previous years. The larger contribution from regulated activities gives networks a greater role in the nine-month results, alongside increased spending on them. Total investment rose 19% to €1.622 billion, while investment in the distribution network increased 42% to about €900 million.
Networks recorded an increase in the volume of energy distributed, which rose to 114 terawatt-hours in the nine months from 109 terawatt-hours in the same period of 2025. Network losses improved to 9%, compared with 9.5% a year earlier. In the power market, the average daily price rose to €74 per megawatt-hour from €63, up 17% year on year. The cost of ancillary services also increased to €22 per megawatt-hour from €17 in the year-earlier period. Endesa said data centers would be a key driver of electricity demand growth and called for more proportionate regulation to preserve Spain’s competitiveness.
The nine-month results follow strong performance in the first half of the year. On July 29, Endesa reported net profit of €1.470 billion, up 41% year on year, and EBITDA of €3.240 billion, up 20%. Ordinary net profit in the first half was €1.480 billion, compared with €1.041 billion a year earlier. Operating cash flow, however, fell to €2.272 billion from €2.356 billion. The company announced its nine-month results on October 28 at 10:00 Central European Time. The comparison shows differing trends in some first-half indicators, as operating cash flow declined despite growth in ordinary profit.
Endesa reaffirmed its forecast for ordinary net profit to exceed €2.4 billion in 2026, while Reuters quoted the company as warning of more difficult market conditions in the fourth quarter. The annual target follows ordinary profit of €2.125 billion in the first nine months. The company is also expected to update its strategic plan in February 2027, the first update under Chief Executive Gianni Armani, covering priorities and growth opportunities for the following three years. Separately, the company expects an arbitration ruling on a review of prices under a long-term liquefied natural gas supply contract by the second quarter of 2027, after the timing slipped from its initial estimate. Reuters reported that the claim related to the arbitration is $218 million, with the company cautioning that the amount could change during the proceedings.
Endesa’s daily data showed the stock closed at €23.69 on October 21 and at €24.68 on October 27, the eve of the results announcement. The available data do not include the October 28 closing price, so they do not establish that the stock fell after the results were released. This available price path refutes the claim in the previous version that the stock dropped after the announcement. In its first-half results, the company reported growth in net profit and EBITDA, while operating cash flow declined. The fourth-quarter result and the expected timing of the strategic-plan update remain upcoming milestones in tracking the company’s performance.