Endesa reported 2025 adjusted net profit surged 18% to €2.35 billion and EBITDA rose 9% to €5.76 billion, exceeding guidance. The utility raised 2026 profit targets to €2.3-2.4 billion and EBITDA to €5.8-6.1 billion, with 2028 EBITDA goals set at €6.2-6.5 billion. Dividends will align with earnings, maintaining a 70% payout ratio.

The company announced a €10.6 billion three-year investment plan, up 10% from prior strategy. €5.5 billion (40% increase) will modernize power grids, while renewable spending drops 20% to €3 billion, prioritizing selective projects and energy storage. Previously, grids and renewables accounted for 42% and 39% of total investment, respectively.

The strategic shift emphasizes grid resilience and storage over broad renewable expansion. Analysts note this aligns with Spain’s energy transition goals, though reduced renewables investment may slow decarbonization targets. The plan signals confidence in stable cash flows to fund infrastructure upgrades while balancing growth.

Endesa’s focus on grid modernization and storage reflects broader industry trends. With dividends tied to profits, shareholders can expect stable returns amid Europe’s energy transition. The company’s updated 2028 EBITDA targets underscore long-term optimism despite macroeconomic challenges.