Endesa increases profit by 15% to september and accelerates grid investment by 42%

• The company posted net profit of €1,962 million, up 15%, and confirmed its forecast of exceeding €2,400 million in ordinary net profit in 2026, even in the face of more demanding market conditions in the fourth quarter. EBITDA rose by 8% to €4,577 million. 
• This growth was accompanied by higher quality and greater stability of earnings. Regulated businesses, primarily grids and non-peninsular generation, now contribute nearly 50% of EBITDA, compared with approximately 40% the previous year. This greater weight enhances the visibility and predictability of the company's earnings.
• Endesa is accelerating its investment drive to capture the opportunities offered by electrification: gross investment grew by 19% to €1,622 million, led by the distribution grid with a year-on-year increase of 42%. This increase reflects its commitment to future growth, prioritising grids with the aim of facilitating new connections and enabling new electricity demand to materialise.
• Regarding financial performance, the company generated cash flow of €3,500 million in the first nine months of the year, closing the period with net debt of €11,200 million (compared with €10,100 million at the end of 2025). The average cost of debt fell from 3.3% to 3.2%.
• The company is protecting its customers against market volatility with offers that provide greater stability, certainty and control over their electricity bills.
• Endesa stresses the need for demand growth and renewable deployment to be accompanied by sufficient firm capacity, which is essential to guarantee security of supply and respond at times of greatest stress on the electricity system.
• The company highlights the extension of the Almaraz operating licence until June 2030, the approval of the capacity market framework – still pending auctions – and the launch of the generation capacity allocation process in the non-peninsular territories as positive steps towards strengthening security of supply.
• The Strategic Plan update is scheduled for February 2027.

Endesa today presented its results for the first nine months of the year, announcing net profit of €1,962 million, up 15% on the same period last year. Ordinary net profit reached €2,125 million, an increase of 22%, while EBITDA (gross operating profit) rose by 8.4% to €4,577 million. The results achieved during the first nine months reflect the strength of the company's business model, the growing weight of regulated activities and its ability to continue accelerating investment. This performance enables the company to confirm that it will exceed €2,400 million in ordinary net profit by the end of 2026, despite the more demanding market conditions forecast for the fourth quarter. 

Greater stability and quality of earnings

A key driver of performance during the period was the increased weight of regulated businesses, primarily distribution and generation in the non-peninsular territories. These activities now contribute nearly 50% of Endesa's EBITDA – compared with approximately 40% a year earlier – strengthening the visibility, stability and predictability of the company's earnings.

The distribution business recorded EBITDA of €1,747 million, up 24.8%. Its gross margin rose by 20.2% to €2,196 million, driven by the new regulatory framework in force since 1 January 2026 and adjustments relating to previous fiscal years.

Meanwhile, combined EBITDA from generation and commercialisation grew by 3% to €2,889 million. Positive performance in the customer business and in generation in the non-peninsular territories offset the decrease recorded in the renewables business.

Grids drive investment growth

Endesa's gross investment amounted to €1,622 million in the first nine months of the year, up 19.4% on the same period of 2025. Grids were the main focus of this investment effort, accounting for around €900 million, an increase of 42%. These investments are earmarked for strengthening, modernising and expanding the distribution grid to meet rising electricity demand, facilitate new connections and support the advance of electrification. Strengthening the grids is essential to enable new demand to materialise.

Electricity distributed across Endesa's grids rose to 114 TWh, compared with 109 TWh in the same period of the previous year. Furthermore, grid losses improved from 9.5% to 9%.

Consequently, the company welcomes the greater regulatory visibility resulting from the increase in grid investment caps for the 2027–2030 period, with an additional €10,200 million in distribution and an additional €7,700 million in transmission; together with the push for flexible grid access, this will help meet new demand in areas where available capacity is currently limited.

Demand growth and progress in electrification

Peninsular electricity demand rose by 3.3% during the first nine months of 2026, and by 1.6% after adjusting for temperature, working days and the supply interruption during the 2025 blackout. Endesa considers that this trend confirms the structural shift towards greater electrification and supports a positive outlook for electricity demand growth in Spain. 

The company identifies data centres as one of the main potential drivers of new demand, although turning this opportunity into effective investment will require sufficient grid capacity and a proportionate regulatory framework that preserves Spain's competitive advantages. 

Firm capacity, essential for security of supply

Demand growth and the deployment of new renewable generation must go hand in hand with the development of sufficient firm capacity to guarantee security of supply at all times. 

Endesa therefore welcomes the progress made in this area: 

• the extension of the operating licence for Almaraz until June 2030
• the approval of the regulatory framework for the capacity market – still pending the first auctions – 
• and the launch of the process to allocate new capacity in the non-peninsular territories.

These steps reinforce the need for grids, new demand and firm capacity to progress in a coordinated manner to make the energy transition possible without compromising system security. 

Offers that protect customers against volatility

The third quarter was marked by a sharp rise in electricity prices. Wholesale market prices comfortably exceeded €100 per MWh over the summer, driven by a combination of higher demand, rising natural gas prices and lower wind and hydro electricity generation. Over the first nine months as a whole, the average day-ahead market price rose by 17% to €74 per MWh. 

Ancillary services costs increased by 34% to €22 per MWh, impacted by reinforced system operation and the repeated use of the active demand response mechanism. The combined cost of the day-ahead market and ancillary services thus reached €96 per MWh, an increase of 20%. 

Against this backdrop, Endesa has designed market offers that protect customers from energy market volatility through tariffs that provide greater certainty and stability on their energy bills, particularly in an environment of widespread inflation. 

The gross margin of the customer business grew by 16.3% to €1,579 million, up €221 million on the first nine months of 2025. This performance was underpinned by the resilience of the retail gas business and an improved electricity supply margin, supported by repricing, procurement and hedging strategies. These factors largely absorbed the increase in ancillary services costs.  Endesa has hedged around 98% of its forecast electricity volumes for 2027 and 65% of those for 2028. As for gas, hedging levels stand at approximately 90% for 2027 and 75% for 2028.

Higher renewable electricity generation and capacity

Endesa's electricity generation rose by 6% to 49,296 GWh, while renewable production grew by 8% to 14,944 GWh. Solar generation stood out with a 30% increase to 3,759 GWh, while wind generation rose by 7% to 4,407 GWh. In total, emission-free technologies – renewables and nuclear – accounted for 85% of the company's electricity generation on the Peninsula. 

However, the gross margin of the renewables business fell to €730 million. Higher electricity generation did not offset lower achieved power sales prices or increased solar curtailment, particularly during the third quarter.

Efficiencies reduce adjusted costs by 8%

Adjusted fixed costs, excluding the €202 million provision relating to workforce restructuring, fell by 8% from €1,612 million to €1,481 million. The efficiencies achieved more than offset both inflationary pressures and costs associated with business growth. 

Endesa continues to execute its transformation plan to structurally improve its cost base and streamline the organisation. Its main lines of action include digitalisation, automation and artificial intelligence; end-to-end process simplification; operating model optimisation; asset efficiency improvements; and workspace and occupancy cost rationalisation.

Cash generation supporting investment and shareholder remuneration

The company generated cash flow of €3,500 million in the first nine months of the year. This cash generation largely funded capital expenditure and enabled €2,600 million to be allocated to shareholder remuneration, including dividend payments and around €900 million linked to the share buyback programme. 

Net financial debt stood at €11,187 million, up €1,100 million compared with the end of 2025. Despite this increase, the net financial debt-to-EBITDA ratio remained stable at 1.8x. Endesa also holds €6,900 million in liquidity, sufficient to cover 17 months of debt maturities. Its average cost of debt edged down from 3.3% to 3.2%. 

The contribution margin rose to €6,253 million, compared with €5,836 million the previous year, driven by the new regulatory framework, settlements from previous years, and the contribution from the commercial business and non-peninsular generation. Gross operating profit of €4,577 million in the first nine months of the year, up 8.4% on the €4,224 million recorded in the same period last year, underscores the company's ability to continue carrying out strategic grid investments backed by the new regulatory framework and adjustments from previous fiscal years, alongside commercialisation – driven by an improved electricity supply margin and the resilience of the gas business – and generation.

In February 2027, the company will present its updated Strategic Plan, setting out its priorities and growth opportunities for the next three fiscal years.