Company Reports

Endesa's first-half EBITDA increased 20% year on year. Net ordinary income jumped 42% as EBITDA growth was supplemented by lower financial expense, thanks to late payment interest income. The firm raised its 2026 net income guidance to above EUR 2.4 billion from EUR 2.3 billion-EUR 2.4 billion.

Endesa's first-quarter EBITDA increased by 14% thanks to a strong performance of distribution networks and a positive one-off. Net income jumped by 24% as the EBITDA growth was supplemented by flat depreciation and financial expenses. The firm confirmed its 2026 guidance.

Endesa set 2028 guidance well ahead of FactSet consensus and our expectations. It will pay a EUR 1.58 dividend on 2025 results, 11% above consensus and 20% above the last one. It targets to increase it by 4% annually by 2028. Shares jumped by 7% on Feb. 24.

Endesa is an integrated utility operating in power production, distribution, and supply in the Iberian Peninsula. Parent company Enel owns 70.1% of its shares.

The European utilities sector increased by nearly 8% since the end of September, outperforming the market by 5% due to stabilizing interest rates, solid third-quarter results, and hopes that artificial intelligence growth will boost electricity consumption in Europe.

Nine-month EBITDA increased by 12% to EUR 4.2 billion. During the third quarter, EBITDA increased by 20%, largely improving from the second quarter's small decline. Management confirmed the high end of EUR 1.9 billion-EUR 2 billion guidance.

Endesa is an integrated utility operating in power production, distribution, and supply in the Iberian Peninsula. Parent company Enel owns 70.1% of its shares.

Endesa is an integrated utility operating in power production, distribution, and supply in the Iberian Peninsula. Parent company Enel owns 70.1% of its shares.

European utilities shares decreased by 3% since the end of June, underperforming the market by about 6%.

First-half EBITDA increased by 12% to EUR 2.7 billion. During the second quarter, EBITDA decreased by 2%, deteriorating from 30% growth in the first quarter.

European utilities rose by 12% in the second quarter, outperforming the market by 10%.

Endesa's first-quarter EBITDA increased 33% to EUR 1.4 billion, surpassing FactSet consensus. Management reiterated its full-year guidance.

On April 28 around midday, a sudden 60% drop of the power supply combined with a disruption in the connection with France caused a shutdown of the electricity grid in Spain and Portugal. The reason is still unknown. Power supply was fully restored on April 29.

European utilities increased by about 10% in the first quarter of 2025 thanks to good full-year results, attractive shareholder remuneration, and limited exposure to US tariffs. The latter was key in the material outperformance of the sector.

Endesa is an integrated utility operating in power production, distribution, and supply in the Iberian Peninsula. Parent company Enel owns 70.1% of its shares.

We maintain our EUR 20 fair value estimate for no-moat Endesa after the company released 2024 results ahead of guidance and confirmed its targets for 2025-27. The company will pay a EUR 1.32 dividend on 2024 results, 32% above 2023, 10% above guidance, and offering a 6.1% dividend yield. Still, we consider the shares slightly overvalued at their current level.

We confirm our EUR 20 fair value estimate after no-moat Endesa released 2025-27 financial targets including a material increase in grid investments conditional on upbeat regulatory assumptions. The firm will pay a 2024 dividend of EUR 1.2, 9% above the EUR 1.10 previous guidance and implying a 6.1% yield, below parent firm Enel's 6.9%. The cash flow-neutrality requirement to pay a 70% payout-based dividend through 2027 is removed while the EUR 1 floor is maintained. Shares appear fairly valued.

We confirm our fair value estimates for no-moat Acciona Energia and Endesa of EUR 25 and EUR 20, respectively, after the latter agreed to buy the bulk of the remaining Spanish hydro assets of the former for EUR 1 billion. The transaction is expected to close in the first half of 2025 upon antitrust and foreign investment clearances since Endesa is a subsidiary of Enel. Acciona Energia appears undervalued while Endesa looks fairly valued.

We confirm our EUR 20 fair value estimate after no-moat Endesa released solid nine-month results and confirmed its 2024 guidance. Shares appear fairly valued.

We confirm our EUR 20 fair value estimate after no-moat Endesa released a strong earnings rebound in the second quarter and confirmed its 2024 guidance. The 2024 dividend yield of 6.7% reflects the undervaluation of the shares.