Enel Earnings: 2026 Guidance Confirmed; Shares Fairly Valued

Key Morningstar Metrics for Enel

• Fair Value Estimate
  : €9.80
• Morningstar Rating
  : ★★★
• Morningstar Economic Moat Rating
  : None
• Morningstar Uncertainty Rating
  : Medium

What We Thought of Enel’s Earnings

Enel ENEL‘s first-quarter EBITDA was flat at €6 billion. Net income decreased by 3% to €1.94 billion, in line with the company’s compiled consensus. The group confirmed its 2026 guidance, including net income in the €7.1 billion-€7.3 billion range.

Why it matters: Networks’ EBITDA grew by 18% to €2.54 billion, chiefly thanks to regulated asset base growth in Italy and higher returns under the new regulatory period in Spain. On the flip side, renewables’ EBITDA decreased because of poor hydro conditions in Latin America, and thermal generation’s EBITDA declined because of lower volumes and spreads in Italy.

• Networks’ share of the EBITDA amounted to 42% in the first quarter, up from 39% in 2025 and 36% in the year-ago quarter, reflecting the step up in grid’s investments since 2024 and higher returns in Spain since the beginning of 2026.
• Higher networks’ share of earnings improves visibility and commands higher valuation multiples. That said, we don’t expect networks’ weight to increase further after the company massively increased its renewables investments in its 2026-28 plan while leaving its networks investments unchanged.

The bottom line: We confirm our earnings estimates, including €7.3 billion in net income in 2026 and our €9.80 fair value estimate for no-moat Enel. Shares appear fairly valued.

Key stats: Net debt was €57.2 billion at the end of March, flat versus the end of 2025, thanks to the issuance of €1.9 billion of hybrid bonds accounted as equity. Investments increased by 11% to €2.3 billion, with similar increases for networks and integrated power.