Published by Global Banking & Finance Review®
Posted on February 24, 2026
3 min readLast updated: April 2, 2026
Add as preferred source on GoogleEndesa will invest €10.6B in 2026–2028, prioritizing power grids (€5.5B) and trimming renewables to ~€3B. The plan follows Iberia’s 2025 blackout and sets 2028 EBITDA at €6.2–€6.5B. (cincodias.elpais.com)
By Pietro Lombardi
MADRID, Feb 24 (Reuters) - Spanish utility Endesa will increase investments, chiefly in upgrading power networks, and boost shareholders' returns over the next three years, based on growing earnings, it said in a strategy update on Tuesday.
A massive blackout that hit Spain and Portugal on April 28 last year has highlighted the need for more to be spent on the grid, but utilities have also called for higher guaranteed returns on such investments.
Endesa said it would invest 10.6 billion euros ($12.5 billion) through 2028. Of that, 5.5 billion euros will be allocated to build and upgrade power networks, a 40% increase.
OVERALL 10% MORE SPENDING
Overall, Endesa's new plan foresees a 10% increase in investments compared with its previous three-year strategy.
At the same time, it will reduce investments in renewables projects by 20% to around 3 billion euros, Endesa said, a day after its parent Enel presented its plan.
Endesa said it would take a more selective approach to renewables and increase the role of power storage and wind projects.
The plan is to increase dividends by an average of at least 4% a year from the 1.58 euros per share it will pay for 2025, with a minimum payout of 70% of adjusted profits.
However, the plan allows flexibility for a further 5 billion euros to be spent. CEO Jose Bogas said in an analysts' call it could be "selectively allocated across several strategic priorities," including paying shareholders more or M&A should opportunities arise.
The dividend growth is in line with an expected increase in core profit. Earnings before interest, taxes, depreciation, and amortisation were forecast on Tuesday at between 6.2 billion and 6.5 billion euros in 2028, up from 5.8 billion euros in 2025.
Analysts at UBS and RBC said the 2028 guidance was well above the market's expectation.
Shares in Endesa rose 6.7% in morning trade, far outperforming the blue-chip index, which was down 0.6%.
Adjusted net profit was forecast to rise to a range of 2.5 billion euros to 2.6 billion euros from 2.3 billion euros last year.
Endesa said its adjusted net profit rose 18% to 2.35 billion euros last year, while EBITDA increased 9% to 5.76 billion euros. Both came in above the company's targets.
For this year, it forecast adjusted net profit of 2.3-2.4 billion euros and EBITDA of 5.8-6.1 billion euros.
($1 = 0.8490 euros)
(Reporting by Pietro Lombardi; Editing by David Latona and Susan Fenton)
Endesa’s updated three‑year strategy boosts investment to €10.6B, shifting more capital to Spain’s power grids while tightening renewables spending and raising 2028 earnings targets. (cincodias.elpais.com)
A 2025 Iberian blackout underscored grid resilience needs, and Spain’s CNMC has set a 6.58% regulated return to encourage investment, though utilities want higher. (apnews.com)
Endesa will be more selective, cutting renewables capex by about 20% to ~€3B and emphasizing storage and wind additions over the next three years. (cincodias.elpais.com)
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