Endesa SA

ELE

Equity

ISIN ES0130670112 / Valor 682405

BME Bolsas y Mercados Espanoles - Renta Variable (2025-10-23)

EUR 29.20-0.76%

Endesa SA
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About company

Endesa SA is a prominent energy company primarily operating in the Spanish and Portuguese markets, where it engages in the generation, distribution, and sale of electricity and gas. As a subsidiary of the Italian multinational Enel, Endesa extends its reach to other European markets, albeit to a lesser extent, offering electricity and gas alongside a range of value-added products and services related to its core business. The company plays a significant role in the Iberian energy sector, leveraging its extensive infrastructure and expertise to meet the energy needs of its customers while also exploring opportunities for growth and diversification in other regions.

Summarized from source with an LLMView SourceSector: Energy

Operating Income Surges by 33%

Endesa SA's EBITDA reached €1,431 million in Q1 2025, marking a 33% increase compared to the same quarter in 2024. This growth was driven by the removal of an extraordinary 1.2% tax and the strong performance of deregulated businesses, including electricity generation and supply.

Net Profit Nearly Doubles

The company reported a net profit of €583 million for the first quarter of 2025, almost doubling from €292 million in Q1 2024. This substantial increase highlights Endesa's enhanced operational efficiency and effective cost management.

Strategic Capital Optimizations

Endesa continued its strategy to optimize capital use by purchasing 626 MW of hydroelectric power, selling a 49.9% stake in a solar assets portfolio, and launching a share buyback plan of up to €2 billion, with €500 million already underway. These actions aim to strengthen the company's asset base and return value to shareholders.

Favorable Market Conditions

The unstable geopolitical situation led to a significant rise in commodity prices, with the average electricity pool price increasing by 90% year-on-year to €85/MWh. Additionally, gas prices on the TTF index rose by 71%, contributing to Endesa's improved margins.

Growth in Electricity Demand

Electricity demand in peninsular Spain grew by 2.5% year-on-year, coupled with increased requests for new industrial demand. This trend underscores the need for enhanced compensation and regulatory updates to support investment in the distribution network.

CEO Advocates for Supply Security

José Bogas, CEO of Endesa, emphasized the importance of ensuring supply security and the competitiveness of the electricity system. He highlighted the necessity of a robust and resilient grid to support the country's reindustrialization through a competitive and renewable electricity mix.

Summarized from source with an LLMView Source

Key figures

48.0%1Y

94.3%3Y

21.6%5Y

Performance

19.8%1Y

20.8%3Y

22.1%5Y

Volatility