Endesa will allocate 70% of its profit to dividend payments until 2026
Endesa has presented an update of its strategic plan for the period 2024-2026, in which it sets targets of between 5,600 and 5,900 million euros in gross profit (ebitda), ordinary net profit of 2,200-2,300 million euros, net financial debt of 8,000-9,000 million euros and a dividend of 1.5 euros (which would mean a dividend yield of 8%), with a guaranteed floor of 1 euro/share for the three years of the plan.
In this way, the profit for 2026 would grow by 64% compared to the pro-forma estimate for 2023, due to the positive evolution of its gross operating profit or ebitda and the end of the temporary tax on large energy companies.
The investment envisaged in the new strategy for the Iberian Peninsula remains in line with the 2023-2025 plan, at 8,900 million. The amount earmarked for networks in this plan (EUR 2,000 million net) is conditional on greater visibility of the 2026-2031 regulatory period in terms of remuneration for network investment.
Endesa’s investment in renewables remains stable at Euro 4,300 million, to reach 13,900 MW of renewable capacity by the end of the plan and thus reach 93% of emission-free production on the Spanish mainland. A greater commitment to wind power, which will absorb 1,600MW (compared to 2,000MW from solar), while wind and hydroelectric repowering projects are the main new features compared to the previous plan.
Dividend
The net financial debt to EBITDA ratio will be 1.4x in 2026, up from 2x in 2022 and an estimated 2.1x in 2025 in the previous plan. The percentage of debt linked to sustainability criteria will exceed 80% by the end of the plan, up from 64% in 2023. Endesa will reach the end of 2026 with a net financial debt of between 8,000 and 9,000 million, between 10%-20% less than at the end of this year.
Endesa also maintains and updates its dividend policy by extending the 70% payout for another year, to 2026. At the same time, it is offering a minimum guaranteed dividend of 1 euro per share for the three-year period 2024-26. The forecast is for a dividend of 1.5 euros per share in 2026, which would mean a dividend yield of 8%.
