Endesa Stock Jumps on Strong Earnings Beat and Upgraded Outlook

Shares of Endesa (ELE) rose 1.9% to €41.02 in trading on Wednesday, approaching a 52-week high, after the Spanish utility reported first-half 2026 financial results that comfortably beat market forecasts and upgraded its outlook for the full year.

Earnings Beat Drives Rally

Endesa's performance was strong across key metrics, providing a clear catalyst for the stock's advance. The company's second-quarter results stood out against analyst consensus estimates:

• Net income for the second quarter was €755 million, approximately 17% above forecasts.
• Q2 EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached €1.6 billion, exceeding expectations by about 6%.

This outperformance was driven by a sharp recovery in its supply division and robust volumes from its conventional power generation, which totaled 15.8 TWh, according to the company's release.

Divisional Strength and Outlook

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A significant factor in the earnings beat was the performance of the supply business, where Q2 EBITDA more than doubled year-over-year to €443 million from €259 million in the same period of 2025. The networks segment also showed substantial growth, contributing €1.2 billion to first-half EBITDA, a 24% increase from the prior year.

This growth has shifted the company's earnings mix, with the predictable, regulated networks business now accounting for roughly half of total group EBITDA. This change is often viewed favorably by investors due to the stability of regulated income streams. The strong results prompted Endesa to raise its full-year earnings guidance.

Market Context and Shareholder Returns

Endesa's rally occurred despite a weaker broader market, with Spain's IBEX 35 index trading lower. The company's results also stood in contrast to peer utility Redeia, which posted a more modest 4% rise in first-half profit, highlighting Endesa's relative strength.

Providing additional support for the share price is an ongoing €500 million share buyback program that the company launched earlier this month. The combination of a significant earnings beat, an improved outlook, and active shareholder returns gave investors confidence even in a cautious macroeconomic environment.