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EBITDA: EUR4.2 billion, a 9% increase year on year.

Net Income: EUR1.7 billion, up 22% versus last year.

Cash Generation (FFO): EUR3.4 billion, a 29% increase year on year.

Capital Expenditure: EUR1.4 billion invested, with nearly half allocated to networks.

Net Financial Debt: Approximately EUR10 billion.

Average Cost of Debt: Declined to 3.3%.

Integrated Unitary Margin: EUR53 per megawatt hour.

Gas Unitary Margin: EUR10 per megawatt hour, expected to end the year at around EUR9 per megawatt hour.

Dividend Payments: Totaling EUR1.5 billion.

Share Buyback Program: Third tranche launched with a target of up to EUR500 million.

Release Date: October 29, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Endesa SA (ELEZF) reported a 9% year-on-year increase in EBITDA, reaching EUR4.2 billion.

Net income rose by 22% compared to the previous year, amounting to EUR1.7 billion.

Cash generation was strong, with FFO increasing by 29% year-on-year to EUR3.4 billion.

The company successfully acquired the remaining 62.5% stake in CETASA, consolidating its wind asset portfolio.

Endesa SA (ELEZF) is progressing with its share buyback program, launching a third tranche with a target of up to EUR500 million.

The current distribution remuneration framework does not provide adequate support for the investment network required by the National Energy Plan.

Commodity prices showed signs of normalization, but the Spanish electricity market faced increased ancillary services costs.

Endesa SA (ELEZF) had to reject most new demand connection requests for 2025 due to capacity constraints.

The company lost 130,000 regulated customers in Q3, focusing on high-value customers but facing challenges in customer retention.

The regulatory framework for distribution remains complex, creating uncertainty and potentially hindering investment decisions.

Q: Given your strong nine-month performance, it seems you only need EUR300 million of net income to hit your full-year guidance at the top end. What are the year-on-year negative moving parts for the fourth quarter? A: We are confident in reaching the top end of our full-year 2025 guidance. Typically, the fourth quarter is strong, and we feel very comfortable with our current position. Regarding customer losses, we focus on high-value customers, and the recent losses are not from valuable segments. Our strategy prioritizes customer value over volume.

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Q: How do you view the potential for RAB growth over the next five years if regulatory outcomes are favorable? A: If regulatory outcomes are favorable, we could significantly increase our investment in distribution. In our current plan, we have EUR4 billion in gross investment in distribution, with potential to increase if conditions improve. We aim to provide value to shareholders through strategic investments.

Q: Can you discuss the impact of ancillary services on your generation business and the potential to pass these costs to customers in 2026? A: Ancillary services have a gross penalization of about EUR75 million per quarter, with a net negative impact of around EUR150 million expected for the year. We are working on strategies to absorb these costs and expect to manage them through portfolio adjustments and customer pricing strategies.

Q: With the current share price levels, does continuing the buyback make sense, or should you focus more on investing in electricity distribution? A: We are committed to providing shareholder value. If regulatory conditions allow, we will invest in the system. If not, we will consider alternatives like share buybacks. Our strategy is to balance growth and shareholder returns effectively.

Q: How do you plan to address the decrease in customer numbers amid high competition? A: The current churn rate is unsustainable, and we are focusing on offering bundled services to retain customers. Our partnership with MasOrange aims to provide integrated telecom and energy services, enhancing customer loyalty and reducing churn.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.