Enel S.p.A.

For 9M 2025, Enel reported EBITDA of EUR 17.3 billion and net income of EUR 5.7 billion, with net income up 5% year over year. The CFO said EBITDA-to-net-income conversion improved to 33%, FFO was EUR 11.1 billion, cash conversion was 64%, and net debt/EBITDA stayed at 2.5x. Net debt was around EUR 57.5 billion, and net debt was reduced by EUR 0.6 billion year over year despite EUR 1 billion of share buybacks. Forward, management confirmed full-year ordinary EBITDA is expected to be in line with guidance and net income slightly above the top of the guidance range. They also said the full-year EBITDA-to-net-income conversion should exceed 30% versus 25% on average in 2020-2022, and the company expects the year-end dividend and buyback programs to continue as planned.

Flavio Cattaneo framed the period as proof that Enel’s strategy is working, emphasizing better asset quality, more profitability, and a lower-risk geographic mix. He highlighted that Europe now accounts for most EBITDA and nearly all net income, and said this should support stable EPS growth and shareholder remuneration. He sounded confident that execution is translating into value creation, pointing to emission-free production at 84% of total generation and a positive cash flow milestone in the U.S.

Stéfano De Angelis focused on the quality of earnings, saying net income growth was supported by a structural improvement in the portfolio and better EBITDA conversion. He cited EUR 4.7 billion of grid investment, EUR 11.1 billion of FFO, EUR 57.5 billion of net debt, and a stable 2.5x net debt/EBITDA ratio even after EUR 1 billion of buybacks. He also said efficiencies are 80% of the 2027 target already reached, financial expenses are down by around EUR 300 million, and the company has around EUR 6 billion of actionable buybacks across group programs.

Analysts focused on buybacks, regulatory updates in Italy and Spain, concession renewals, MACSE and FER X auctions, CapEx upside, data centers, working capital, and the outlook for hydro and retail churn. Management said it has the balance sheet to execute the full EUR 3.5 billion Enel buyback authorization but still sees other uses for financial flexibility, including industrial growth. On regulation, Enel said Italy’s concession process is awaiting the ministry decree, Spain’s final framework should be set by year-end, Brazil’s concession renewal process points toward full extension, and the Brazilian retail market will fully liberalize within 3 years.