European Utilities "2Q26 preview - Southern European Utilities" Sanchez-Bordona

Research evidence excerpt

European Utilities "2Q26 preview - Southern European Utilities" Sanchez-Bordona

Global Research

17 July 2026ab

European Utilities Equities

Europe including UK2Q26 preview - Southern European Utilities

Utilities

Gonzalo Sanchez-Bordona

No big surprises expected on prints; focus on guidance, margins and regulation Analyst

Southern European utilities will report 2Q26 earnings over a concentrated two-week gonzalo.sanchez-bordona@ubs.com

period, with Enagás, Iberdrola and Naturgy reporting on 22 July, followed by Endesa, +34-91-745 4147

EDP, EDPR, Redeia, Snam and Terna on 29 July, and Enel on 30 July. We generally don't Anna Webb

expect material surprises and see all companies on track to deliver or to beat their FY26 Analyst

guidance. 2Q25 was a strong hydro quarter across Iberia and we expect the more anna.webb@ubs.com

normalised output in 2Q26 - still above-average, though - to be offset by higher prices +44-20-7568 8293

and pumping spreads. Enel in Italy should be penalised by a c20% reduction in hydro Christabel Kelly

output though. The key points to watch are likely to be outlook for integrated margins in Analyst

Iberia given hydro and continued reinforced operation post-blackout, comments on christabel.kelly@ubs.com

regulatory developments (mainly in Italy), and any changes to full-year guidance. +44-20-7568 2358

Mark Freshney

Potential for guidance upgrades more relevant than results, in our view Analyst

Our expected H1 results for Endesa, Iberdrola and Naturgy suggest a potential guidance mark.freshney@ubs.com

+44-20-7568 3989

upgrade may come in this round of results. Drivers are different, though. Endesa should

enjoy c€0.2bn of positive regulatory one-offs linked to grids and non-mainland Wanda Serwinowska, CFA