Naturgy Energy Group SA

Latest Results (27.10.2025):

Naturgy Energy Group SA reported its financial results for the first half of 2025, demonstrating resilience and growth despite higher energy prices and macroeconomic uncertainties. The company maintained strong EBITDA levels, achieved a significant increase in net income, and reinforced its commitment to shareholder value through strategic investments and share repurchases.

Solid EBITDA and Increased Net Income

Naturgy delivered an EBITDA of €2,848 million in 1H25, virtually unchanged from €2,846 million in 1H24. Net income rose by 10% to €1,147 million compared to €1,043 million in the previous year, reflecting the company’s effective diversification and operational resilience.

Strong Cash Flow and Balanced Sheet

The company generated robust free cash flow of €1,280 million after minorities, a 90.8% increase from €671 million in 1H24. Net debt increased to €13,689 million, up 12.2% from €12,201 million at the end of 2024, while maintaining a net debt to EBITDA ratio of 2.6x.

Strategic Share Repurchase and Dividend Policy

Naturgy completed a €2.3 billion share repurchase tender offer, reducing the proportion held by core shareholders and maintaining treasury stock at 10% of total capital. The company also revised its dividend distribution policy, announcing an interim dividend of €0.60 per share for 2025 and setting a trajectory to increase annual dividends to €1.90 per share by 2027.

Robust Performance Across Business Units

The Distribution Networks unit showed stability with increased regulatory remuneration in Spain and tariff updates in Latin America. Energy Markets benefited from competitive gas procurement and proactive risk management, while Thermal Generation performed strongly in Spain, supported by higher demand and production in ancillary service markets. Renewable capacity expanded to 7.7 GW, highlighting Naturgy’s ongoing commitment to sustainable energy.

Positive Outlook for the Rest of 2025

Naturgy projects EBITDA and consolidated net income attributable to the parent company to exceed €5.3 billion and €2.0 billion, respectively, by year-end 2025. The company expects to maintain a net debt to EBITDA ratio below 2.8x, underscoring a positive outlook supported by strong cash flow and strategic investments.