Business
Endesa S A : reports net profit of €1,711 billion to September, up 22% from 2024
Endesa S A : reports net profit of €1,711 billion to September, up 22% from
About this update from Endesa S.a.
Gross operating profit (EBITDA) rose 9% year-on-year to €4.224 billion Endesa has confirmed its full-year financial forecasts at the upper end of its range: up to €5.6 billion in EBITDA and €2 billion in net profit. This performance was driven by a 22% increase in net profit to €1.711 billion in the first nine months of the year, alongside EBITDA of €4.224 billion, up 9%. Cash generation als o showed solid growth, rising 29% to €3.437 billion through September. Endesa also continues to make progress in its efficient capital allocation strategy, with several key deals in recent months: the acquisition of wind power firm Cetasa, the agreement to purchase MasOrange's energy retail business (pending approval by the CNMC), and the completion of the sale of a 49.99% stake in a portfolio of operating solar plants to Masdar, signed last March. Additionally, it has launched the third tranche of its €2 billion share buyback programme, for up to €500 million. The company reiterated to the market that the CNMC's second proposal for remunerating the electricity distribution network between 2026 and 2031 discourages investment and hinders the achievement of Spain's energy policy goals: namely, decarbonisation and electrification of the economy. Regarding conditions in the electricity market, adjusted demand grew 1.8% year-on-year in Spain and 2.5% in Endesa's Peninsular distribution areas. This increase reflects a rebound in industrial and service-sector consumption, new demand connections, and higher residential consumption due to high summer temperatures. The average electricity pool price rose 21% in the first nine months of the year, reaching €63/MWh. An extra €17/MWh average charge is included, mainly for costs related to the reinforced operating measures introduced by the system operator following the blackout on 28 April. Endesa stressed that, in light of the lessons learned from the blackout and in a system increasingly dominated by renewable energies, it is critical to reconsider the planned nuclear phaseout, beginning with the Almaraz plant. This facility has proven essential in ensuring supply security in a region with a strong presence of renewable generation. Endesa wrapped up the first nine months of 2025 with strong performance across its key financial indicators, enabling it to confirm its full-year forecasts at the upper end of the range: up to €5.6 billion in EBITDA and €2 billion in net profit. This achievement was possible thanks to a 22% rise in consolidated net profit to €1.711 billion over the first three quarters, while EBITDA reached €4.224 billion, up 9%. Free cash flow generation also increased sharply by 29%, reaching €3.437 billion. During its results presentation to analysts, the company highlighted continued progress in its capital efficiency strategy through two deals closed in recent months: the acquisition of 100% of wind power firm Cetasa, in which it already held a 37.5% stake, and the sale of a 49.99% share in a group of operating solar plants to Masdar. It also signed an agreement to purchase MasOrange group's energy retailer, pending approval by the CNMC. Finally, under the €2 billion share buyback programme approved at this year's annual general meeting, Endesa has launched the third tranche for up to €500 million, to be executed by 28 February next year. Regarding electricity market trends between January and September , the company highlighted two key dynamics. First, adjusted demand growth of up 1.8% across the Spanish Peninsula and 2.5% in Endesa's Peninsular distribution areas. This increase has been supported by the recovery in consumption from the industrial and services sectors -the latter driven in part by the connection of new data centres- as well as higher residential consumption due to last summer's rise in temperatures. Endesa places a particular emphasis on the arrival of new industrial demand as a key driver of consumption. Secondly, average electricity pool prices stood at €63/MWh in the first nine months of the year, marking a 21% year-on-year increase. To this amount must be added an average of €17/MWh in ancillary service costs, mainly resulting from the so-called reinforced operation measures implemented by the system operator since the blackout on 28 April. All told, the average electricity price from January to September was €80/MWh. Commenting on the April blackout and its consequences, Endesa CEO José Bogas told analysts: "It remains unclear how long the system operator will maintain its special anti-blackout operation, which comes with a significant additional cost for the system. Beyond that, we must take into account some of the lessons learned from the incident. The Spanish electricity system is safe, but its operation needs to be updated in light of the structural changes brought about by the growing dominance of renewable technologies. In this new scenario, it is critical to reconsider the planned nuclear fleet decommissioning plan, beginning with Almaraz. This plant has proven key to strengthening security of supply due to its location in a geographical area with significant renewable energy production." The company's top executive also addressed the new proposed remuneration framework for the distribution network for the 2026-2031 period, which requires final approval before the end of this year. While the second proposal includes some improvements, it still falls short of the ambition and urgency required to meet the decarbonisation and electrification goals of the country's energy policy. Specifically, the case for improving the remuneration model rests on the following points: Connection requests to the distribution network continue to grow, as they have since mid-2023. In contrast to the CNMC's assumption that there is available capacity on the grid, sector-wide data as of early September show the grid was already 83% saturated, while Endesa's own capacity is effectively at zero today. As a result, Endesa has had to turn down a relevant percentage of new connection requests received so far in 2025. All of this clearly demonstrates the need to accelerate grid investments to avoid jeopardising electrification targets . In short, a fair and reasonable remuneration framework is needed , one that aligns with the scale of the challenge ahead. In addition, the pending update of the remuneration rate must urgently address disparities with other European countries and other regulated sectors in Spain.