Endesa reports a net profit of €583 million through March

The company’s operating income (EBITDA) reached €1,431 million, a 33% increase compared to 2024

• Endesa has reported a net profit of €583 million in the first quarter of the year

• Operating profit reached €1,431 million, representing a 33% increase, driven by the removal of the extraordinary 1.2% tax and the strong performance of the deregulated businesses (electricity generation and supply).

• In this quarter, the company has progressed in its strategy of optimising the use of available capital with the purchase of 626 MW of hydroelectric power, the sale of a 49.9% stake in a second portfolio of operational solar assets, and the launch of a share buyback plan of up to €2 billion, with €500 million already underway

• The unstable geopolitical situation has raised commodity prices during the quarter, added to the high volatility of daily electricity pool prices. The average price stood at €85/MWh, 90% higher than in the same quarter last year.

• Demand growth data for the period showed a 2.5% year-on-year increase in adjusted terms in peninsular Spain. This, coupled with the rise in requests for new industrial demand, stresses the need to improve compensation and update the regulatory framework to boost investment in the distribution network

• Endesa’s CEO, José Bogas, advocates for ensuring supply security and the competitiveness of the electricity system

   

Endesa has started 2025 with a strong performance in its key financial metrics, allowing it to progress toward achieving its full-year objectives. Specifically, operating income (EBITDA) grew by 33% in the first quarter of the year, reaching €1,431 million. The rise was driven by the strong performance of the gas margin and the removal of the extraordinary 1.2% tax this year. Net profit has increased compared to the same quarter in 2024, reaching €583 million.

Alongside these key financial figures, in this quarter Endesa has continued to make progress on its strategy to optimise the use of available capital. This included the purchase of 626 MW of hydroelectric power – announced in November 2024 – for approximately €1 billion, the sale of a 49.9% stake in a second portfolio of operational solar assets in Spain totalling 400 MW for another €200 million, and the launch of a €500 million tranche of its share buyback programme, which could reach a total of €2 billion.

Regarding the market context, Endesa highlighted that the unstable geopolitical situation has impacted raw material prices, driving up the average cost of gas on the TTF index by 71%, reaching €47/MWh, compared to the first quarter of the previous year. This, combined with the high penetration of renewable energies during the period, has led to a 90% year-on-year increase in the average price of the daily-ahead electricity market (pool), reaching €85/MWh. All of this places Spain in an evolving scenario that presents new challenges in terms of supply security and system stability, as recently observed.

Furthermore, the company emphasised that the first signs of sustained electricity demand growth were felt in the first three months of the year, with a 2.9% increase in adjusted terms in Endesa's distribution areas in the Peninsula, and a 2.5% increase across all of peninsular Spain. This, coupled with an unprecedented growth in requests for new electricity demand, should, according to Endesa, lead to:

• seizing the unique opportunity to reindustrialise the country through a competitive and renewable electricity mix

• an improvement in the rate of return on investments in the distribution network, which will require substantial funding and face intense competition for financing

• a regulatory update that optimises the use of the grid and prevents speculation with connection requests

• an improvement in the remuneration methodology and incentives for investment

• increasing the cap that limits investments in distribution within the sector

“We are modern societies because we are electrified, and for that very reason, ensuring supply security and the competitiveness of our electricity system is essential. Demand is showing signs of recovery, representing a unique opportunity to reindustrialise the country. To achieve this, we need a robust and resilient grid, which calls for significant investment and fair remuneration. Moreover, having a diversified and competitive generation mix is essential. To this end, it is crucial to review the taxation of nuclear energy to ensure its economic viability, so that it can continue to provide security of supply in the coming years,” said José Bogas, CEO of Endesa.