Endesa (ENAA) Q3 2026 Earnings Report

The call was predominantly positive. Management reported strong EBITDA, net income, net ordinary income, cash generation, efficiency savings and regulated-business growth, while confirming guidance above EUR 2.4 billion and highlighting structural demand growth, grid investment and potential capacity-market contributions. The main challenges were higher ancillary service costs, weaker renewable margins caused by lower wind and hydro resources and lower achieved prices, elevated market volatility, higher interruption time due to wildfires, and restrictive data center regulation. These negative factors were acknowledged but did not outweigh the reported financial performance, improving customer trends and positive strategic outlook.

Endesa confirmed its net ordinary income guidance of more than EUR 2.4 billion despite the more challenging market conditions expected in the fourth quarter; it expects the free power margin to hold at EUR 53 per megawatt hour for full year, forecasts ancillary services cost at the end of the year between EUR 5.5 billion and EUR 6 billion, expects customer trends to reverse in the short to medium term, with the loss of clients reduced more than 50% in October and the phenomenon expected to be over during the final of this year and the beginning of the next year, expects further savings in the fourth quarter and is studying for a new wave in 2027, foresees the first capacity auction are likely before 2027 and assumes a prudent annual contribution from 2027 onwards, and will implement the EUR 2 billion share buyback program authorized through December 2027, with EUR 1.4 billion executed and 70% completion at 9 months of 2026.