Enel S.p.A.

For the first 9 months, Enel reported EBITDA of EUR 17.3 billion and net income of EUR 5.7 billion, with net income up 5% year on year. The CFO said EBITDA conversion into net income improved to 33%, FFO was EUR 11.1 billion, cash conversion was 64%, net debt was around EUR 57.5 billion, and net debt/EBITDA stayed at 2.5x despite EUR 1 billion of buybacks. The company also said it reduced net debt by EUR 0.6 billion year on year and that ordinary EBITDA is expected to end the year aligned to guidance, while net income should finish slightly above the top of the guidance range.

Flavio Cattaneo framed the quarter as evidence that Enel’s strategy is working, highlighting better asset quality, improved profitability, and a stronger focus on stable European markets. He emphasized that the portfolio shift has lifted EBITDA-to-net-income conversion and supported EPS growth and shareholder remuneration. His tone was confident and execution-focused, citing emission-free production at 84% of total generation and a positive cash flow in the U.S. for the first time since operations began there.

Stéfano De Angelis focused on the financial discipline behind the results, pointing to 5% net income growth, 33% EBITDA-to-net-income conversion, EUR 11.1 billion of FFO, and 64% cash conversion. He said efficiencies are front-loaded with 80% of the 2027 target already reached, financial expenses were down by around EUR 300 million thanks to a EUR 4.3 billion reduction in gross debt and lower funding costs, and net debt/EBITDA remained at 2.5x even after EUR 1 billion of buybacks. He also stressed that the balance sheet gives the company room for the full EUR 3.5 billion Enel buyback authorization, while still preserving flexibility for industrial investment.

Analysts pressed on the remaining share buyback capacity, and management said the company has the balance sheet to execute the full EUR 3.5 billion authorization, but buybacks are only one use of financial flexibility alongside industrial investment. Questions on Italy concessions, Spanish regulation, and Brazilian renewals were met with commentary that the company is waiting on formal government steps in Italy, sees Spanish regulation as still not sufficiently supportive of investment, and believes Brazil’s operational turnaround supports a full concession renewal. Management also discussed MACSE, saying Enel won around 70% of the auction with 6.7 GWh, that the project should generate 15 years of 95% regulated revenues, and that COD/EBITDA would arrive in 2028.