Endesa, part of the Enel group, unveiled its updated strategic plan this week, outlining a path to cut costs by 1.2 billion euros by 2026 while committing to a roughly 35.8 billion euro investment over the same period. The roadmap shows a slightly reduced investment pace, about 3.2% lower than previously planned for 2023 through 2025. Milan was cited as the presenting location for the strategy. The majority of the investments are set to flow through a handful of key countries where Endesa can leverage its position as an integrated utility; Spain is highlighted as a central focus, with approximately 8.95 billion euros earmarked for the country (this figure also covers Portugal, though Portugal is not listed as a priority country).
Enel’s allocation strategy emphasizes its country of origin, Italy, as a primary hub by directing 49% of the total investments there, with sizable shares also directed to Brazil, Chile, and Colombia at 19%, and the United States at 7%. The plan stresses regulatory stability in these markets as a critical factor for directing capital into owned, regulated businesses. A key portion of the investment, about half, will go toward upgrading and expanding electrical networks to improve quality, durability, and digitalization, along with new connections within the core market of Italy, identified as the central recipient of the funds (roughly 12.2 billion euros).
The remaining half of the investments will be dedicated to renewables and related technologies, pursued with a more selective approach to onshore wind, solar, battery storage, and repowering existing parks. Approximately 12.1 billion euros of this renewables allocation targets Europe, while the rest is spread across Latin America and the United States, aiming to add about 13.4 GW of capacity. An additional 3 billion euros is allocated to strengthening customer operations and enhancing package offerings to foster loyalty and improve profitability.
Endesa and its parent group expect to see EBITDA rise to between 23.6 and 24.3 billion euros by 2026, with net earnings projected to reach between 7.1 and 7.3 billion euros. In 2022, the Italian affiliate reported an EBITDA of 16.386 billion euros and net profit of 5.391 billion euros. A baseline dividend of 0.43 euros per share is maintained, with the potential to increase up to 70% of net ordinary profit for the period, subject to performance and regulatory conditions. (Source: Endesa and Enel disclosures, attributed to corporate communications)
Cash generation from sales is expected to support ongoing net investments and dividend payments, with a total outlook of around 43.8 billion euros to cover capital expenditure and shareholder returns. The plan also details cost-reduction targets of 1.2 billion euros by 2026, with roughly 1.0 billion euros arriving from more efficient processes, organizational optimization, and a better fit between international operations and subcontracting, alongside technology investments aligned to the group’s base country. About 200 million euros of savings are anticipated from improvements to “adjusted” operating costs. (Source: Endesa strategic update, attributed to corporate communications)
As part of its environmental and energy transition commitments, the strategy reaffirms the aim to retire all coal-fired plants by 2027, noting that in Spain most coal plants have already been closed or repurposed. The company had previously signaled a broader ambition to achieve zero emissions by 2040, with a clear emphasis on accelerating the shift away from fossil fuels while continuing to modernize and expand clean energy capabilities. (Source: Endesa strategic update, attributed to corporate communications)