After a 2024 marked by concrete objectives such as debt reduction, strategic divestments and a renewed focus on the most profitable sectors, Enel is ready to write a new chapter with the 2025-2027 Strategic Plan: i investments they rise to approximately 43 billion euros, a good 7 billion more than the previous plan. In addition to focusing on networks e renewable, the energy giant is also raising the bar on dividends, bringing them from 0,43 to 0,46 euros per share. With this move, Enel remains faithful to market expectations and presents numbers that are expected to be solid, with a expected ordinary ebitda between 24,1 and 24,5 billion euros for 2027 and a net profit between 7,1 and 7,5 billion. Financial strength will remain central: the net debt to ebitda ratio it will be maintained around 2,5x at the end of the plan, well below the sector average (3,1x), ensuring flexibility to seize market opportunities. In short, Enel is keeping a reserve for possible M&A operations, as also declared by CEO Flavio Cattaneo during the Capital Market Day. “If we don't find opportunities, we can reward shareholders in other ways, with buybacks or a rich coupon. We can act on several fronts. The group is in excellent health and capable of obtaining satisfactory results”. It was clear that a new era had begun for Enel with the first acquisition by Cattaneo. Now the Capital Market Day reveals the numbers.
The new plan, however, does not surprise the market: the title slips on Piazza Affari, giving up more than 1% to 6,70 euros per share around 10:30.
Enel 2025-2027: Strategic Pillars Confirmed and Newco Worth at Least 1 Billion for Data Centers
The 2025-2027 Plan, presented on Monday 18 November in Milan, confirms the three strategic pillars already outlined in the previous plan. The first is the search for profitability, flexibility e resilience, with careful management of investments to balance risks and opportunities. Added to this is constant work on efficiency ed effectiveness, aimed at optimizing processes and offers, making the most of existing resources. Finally, attention to a sustainability financial and environmental aims to maintain the solidity needed to address the challenges of climate change without neglecting growth objectives.
The plan also includes a focus on innovation. Enel is about to launch a newco from 1 billion euros designed to enhance the value of electricity grid connection assets, both its own and those of third parties, in Italy and possibly abroad. The idea is to transform these assets into profit opportunities, offering construction and maintenance services to other utilities as well. “They are the pieces of the network that connect the generation plants to the national grid,” explained the manager. Not only that: the group is targeting the sector of data center, combining renewable energy and connection solutions. CEO Cattaneo has already outlined the perimeter for potential partnerships: no private equity funds, better to ally with municipal companies or companies that already own generation plants or need to develop them.
But not everything proceeds without pauses. On the US front, the project of Enel 3Sun Gigafactory remains on standby. Cattaneo has clear ideas: "We will move forward only if we find an American partner who believes in us enough to want a majority. If they don't believe in us, why should an Italian?"
Enel, 7 billion more in the 2025-2027 Plan: Italy protagonist
Enel is putting 43 billion euros on the table for the three-year period 2025-2027, focusing on networks, renewables and customer services. The largest slice, well 26 billion, will be used to strengthen the electrical networks, with a 40% jump compared to the previous plan. TheItaly , Spain will be the main recipients, with 16 billion and 4 billion respectively, absorbing together 78% of the budget thanks to favorable regulatory frameworks. The remaining 22% will be allocated toLatin america. The expansion of the networks will bring the Regulated Asset Base (Rab) to 52 billion euros in 2027, compared to the 43 billion estimated in 2024, with a contribution to the group's EBITDA that will rise to 40%.
Another important part of the funds will be allocated to energy renewable, where the energy giant plans to invest 12 billion euros for increase capacity by approximately 12 GW, focusing mainly on Aeolian Onshore, hydroelectric e car's battery performance, which together will cover over 70% of the investments. The goal is to reach 76 GW of renewable capacity by 2027, increasing green production by 15%, with a strong focus on Europe and the United States, which will represent approximately 55% of total renewable energy production.
- investments lorders in renewables will be allocated as follows: approximately 65% in Europe (approximately 34% in Italy and approximately 31% in Spain), the remaining 35% in Latin America and North America.
The investment plan is not just a question of numbers, but of strategic choices: approximately 75% of the funds will be allocated to Europe, with the remainder going to Latin America and North America. A decision that aims for a balanced geographical distribution, in line with the expected returns and growth opportunities. Closing the circle are the 2,7 billion euros intended for the area clients, with the aim of offering integrated solutions for energy, products and services and increasing the customer base in the free electricity market in Italy and Spain to over 19 million in 2027.
Growing numbers and dividends
In the first nine months of 2024, Enel recorded a EBITDA of 17,4 billion euros and expects to close the year with a result of between 22 and 23 billion. This performance, 30-40% higher than the average of the last decade, was possible thanks to a rigorous policy of cost efficiency, which continues to be one of the key points of the new Strategic Plan: planned savings of 1,5 billion euros by 2027, 500 million more than the previous plan. The mantra is simple: more results, less costs, and an acceleration towards an increasingly green energy transition.
On the financial front, Enel plans to reduce the overall cost of thegross debt at 3,9% by 2027, ensuring room for strategic maneuver. Meanwhile, cumulative EBITDA in the three-year period will exceed 70 billion euros, driven by networks (27 billion), regulated generation (4 billion), Power Purchase Agreements (23 billion) and fixed-price end customers (10 billion).
One of the most appreciated innovations on the market is certainly the dividend upward revision. The coupon for 2024 rises to 0,46 euros per share, with the possibility of further increasing it in the next three years, up to a 70% payout on consolidated ordinary net profit. Parameter no longer tied to the achievement of the cash flow neutrality.
Comment by Flavio Cattaneo (CEO Enel)
“The managerial actions carried out in the last year have allowed us to achieve all the objectives communicated to the markets and to strengthen the financial solidity of the group – the CEO comments in a note – we can thus open a new chapter of growth, which will create further value for shareholders and all our stakeholders. Between 2025 and 2027, we will focus on core activities and flexible capital allocation, increasing investments, mainly in regulated assets with predictable returns, which will at the same time favor an acceleration of the energy transition. We will also continue to improve efficiency and profitability, also through new business opportunities. This strategy allows us to review the dividend policy upwards in the plan period”. The ball is now in the market's court, which will have to decide whether this strategy will be enough to convince investors.
