Investing.com -- Italian utility Enel reaffirmed its full-year guidance after reporting first-quarter earnings broadly in line with expectations on Thursday, with strength in Spain and Latin America helping offset weaker performance in its domestic market, sending shares up higher on Friday.
Ordinary EBITDA rose 3.6% year-on-year to €6 billion, broadly matching analyst expectations, while ordinary net income increased 3.9% to €1.94 billion.
Revenue fell 6.7% to €20.59 billion, mainly due to lower electricity sales volumes in Italy, reduced average customer prices and weaker wholesale trading activity. Ordinary earnings per share rose 6.2% to €0.203.
Enel said improved profitability was supported by stronger operating performance, contributions from renewable energy stewardship activities in Greece, South Africa and Australia, as well as lower debt costs.
Capital expenditure rose 11% to €2.30 billion as the group accelerated investments in renewable energy and power grids. Net financial debt edged up to €57.83 billion from €57.18 billion at the end of 2025, mainly due to currency movements.
The group confirmed its 2026 guidance for ordinary EBITDA of €23.1 billion-€23.6 billion and ordinary net income of €7.1 billion-€7.3 billion.
Analysts at Morgan Stanley said the reiterated guidance appeared "well underpinned," noting first-quarter underlying net income already accounts for roughly 26% of full-year consensus expectations.
The brokerage said the quarter showed an improving earnings mix, with networks contributing 42% of EBITDA, although it cautioned results likely included an unexpected roughly €100 million positive one-off in Iberian networks, implying underlying earnings may have been modestly below consensus once adjusted.
Morgan Stanley also pointed to growing investor focus on Enel's U.S.-focused renewables expansion strategy, highlighting management comments on a 15-gigawatt brownfield renewables pipeline and additional deal opportunities expected over the coming months.
At the same time, analysts flagged regulatory uncertainty in Italy's power market as a continuing risk after management reiterated expectations for potential government intervention aimed at lowering electricity prices.
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