Enagas SA (ENGGF) Full Year 2025 Earnings Call Highlights: Strong Financial Performance Amid …

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Wed, February 18, 2026 at 12:00 AM GMT+9 4 min read

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ENGGF

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**Core After-Tax Profit:** EUR266.3 million.

**EBITDA:** EUR675.7 million.

**Net Profit (including one-offs):** EUR339.1 million.

**Core Operating Expenses:** Decreased by 0.6% versus 2024 levels.

**Financial Expenses:** Down 20.5%.

**Net Debt:** EUR2.47 billion.

**Financial Cost of Gross Debt:** 2.1%.

**FFO to Net Debt Ratio:** 25.7%.

**Liquidity Position:** Over EUR2.51 billion.

**Subsidiaries Contribution to EBITDA:** EUR155.3 million.

**Asset Rotation Impact:** Net capital gains from various sales and acquisitions, including EUR5.1 million from Soto La Marina and EUR9.6 million from Sercomgas.

**2026 Targets:** Core after-tax profit of approximately EUR235 million, net debt around EUR2.4 billion, EBITDA of EUR620 million, and a EUR1 per share dividend.

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Release Date: February 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Enagas SA (ENGGF) exceeded its 2025 budget targets, demonstrating strong execution of its strategic plan.

The Spanish gas system showed a 100% supply guarantee and availability, contributing significantly to energy security.

The company achieved a 7.4% increase in total gas demand transported, with a notable 33.4% rise in gas demand for electricity generation.

Enagas SA (ENGGF) maintained a robust financial position with a net debt of EUR2.47 billion, well within its annual budget forecast.

The company has made significant progress in green hydrogen infrastructure, securing substantial funding and political support for future projects.

Negative Points

There is uncertainty regarding the regulatory framework for the 2027-2032 period, which could impact future remuneration.

The arbitration cases in Peru remain unresolved, with potential delays in cash inflows expected until 2030.

The company faces potential delays in hydrogen infrastructure projects due to administrative tasks like permits and environmental assessments.

Enagas SA (ENGGF) is not counting on cash inflows from the GSP award in 2026, reflecting a conservative financial stance.

The regulatory framework for hydrogen investments is still under development, creating uncertainty about future returns.

Q & A Highlights

Q: Can you provide insights into the regulatory review and remuneration risks for the 2027-2032 period? Also, what caused the EUR70 million shift in provisions? Lastly, are there expected delays in the hydrogen backbone network FID, and how might this affect dividend policy? A: The regulatory review aims to maintain stability, with adjustments expected but no major changes. Four elements are crucial: operating expenses, maintaining OpEx margins, incentivizing asset life extension, and a mechanism for gas system availability. The EUR70 million shift relates to a provision for a potential tax break from Tallgrass Energy, with no negative impact expected. Delays in hydrogen infrastructure could save funds for future investments, maintaining a stable dividend policy.

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Q: Could you update us on the timeline for the regulatory draft and your approach to M&A given your balance sheet strength? A: The CNMC plans to release the draft circular proposals for public consultation in the coming weeks, likely by March or April, with final approval expected by October. Regarding M&A, Enagas prioritizes organic growth in renewable hydrogen, dividend sustainability, and credit ratings. Any investment opportunities must align with strategic criteria, focusing on Spain, Europe, and regulated assets.

Q: With a flat net financial debt target for 2026, is there no expected cash inflow from Peru in 2026? Also, what would drive significant net income growth in 2027? A: We are conservatively not counting on cash inflows from Peru in 2026, expecting them by 2030. Net income growth in 2027 is anticipated from improved EBITDA and BDI at the start of the next regulatory period, though specific guidance is not yet provided.

Q: What rate of return do you expect the CNMC to approve, and what are your expectations for the hydrogen regulatory framework? A: We anticipate a rate of return close to 6.5%, aligned with the electricity system’s rate. The hydrogen regulatory framework will be shaped by the transposition of the European hydrogen and decarbonized gas package, with a draft law expected soon. This will establish the national hydrogen system, regulated market, infrastructure development mechanisms, and demand incentives.

Q: Can you break down the EUR225 million investment planned for 2026, and clarify the GSP timeline and hydrogen regulation details? A: The 2026 investment includes EUR97 million for natural gas infrastructure, EUR49 million for hydrogen infrastructure, and EUR55 million for new businesses. The GSP annulment appeal resolution is expected by year-end 2026. The hydrogen regulation draft law is anticipated soon, with the CNMC preparing for future regulatory responsibilities.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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