Equity Snap: Endesa (ELE SM): 2026 guidance upgraded on strong H1 2026

Research evidence excerpt

Equity Snap: Endesa (ELE SM): 2026 guidance upgraded on strong H1 2026

29 July 2026

Equity Snap: Endesa (ELE SM) Equities Electric Utilities

2026 guidance upgraded on strong H1 2026 Spain

◆ 1H2026 results above expectations, mainly driven by strong Meike Becker*

performance in retail business Senior Global Utilities & Renewables Analyst HSBC Bank plc

meike.becker@hsbc.com

◆ Endesa upgrades 2026 net income guidance from +44 20 7991 6441

EUR2.3bn-2.4bn to more than EUR2.4bn Charles Swabey*

Global Utilities & Renewables Analyst

HSBC Bank plc

charles.swabey@hsbc.com

Endesa (ELE SM, EUR40.25, Hold, TP EUR38.40) +44 20 3268 3954

(Priced as of 28 Jul 2026)

Chandrahasan S*

Associate

1H2026: Beat versus expectations. Endesa reported 1H26 EBITDA of EUR3.240m Bangalore

which is above our as well as market expectations. The beat versus our numbers

was driven by stronger-than-expected results in retail business, while networks and * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

renewables were slightly below our forecasts. Net profit came in at EUR1,470m not registered/ qualified pursuant to FINRA regulations

ahead of expectations (+9% vs HSBC and +7% vs consensus) due to the EBITDA

beat and lower financial expenses.

Outlook: With Endesa achieving over 60% of its FY EPS guidance in H1, the

company upgraded FY 2026 net income guidance from a range of EUR2.3bn-2.4bn

to more than EUR2.4bn, driven by strong H1 and positive non-recurring items.

Networks reported EBITDA of EUR1,167m implying c24% increase versus 1H2025,

mainly driven by new regulatory framework and previous year resettlements (in Q1).

Generation & Supply reported EBITDA of EUR2,073m, above our forecast.

◆ Retail & Endesa X EBITDA at EUR783m was significantly above our