Enel eyes greater profit and dividends in new 2025 to 2027 strategy

Enel unveiled its 2025-2027 growth strategy on Monday, emphasizing enhanced earnings and expansion of its renewable energy portfolio.

Enel eyes greater profit and dividends in new 2025 to 2027 strategy

As the world’s largest private renewable energy operator, the Rome-based company aims to embark on a new phase of sustainable growth and value creation. The updated strategy includes a substantial increase in capital expenditure to €43 billion, up by €7 billion compared to its previous plan. Enel has earmarked €26 billion to strengthen power grids, with 78% of this investment directed toward Italy and Spain, leveraging favorable regulatory environments, while the remaining 22% will be invested in Latin America.

€12 billion to boost renewable energy capacity

The plan also allocates €12 billion to boost renewable energy capacity by approximately 12 gigawatts, bringing the total capacity to 75 GW. Additionally, €2.7 billion will be invested in expanding the integrated range of energy products and services for customers. The company forecasts annual earnings before interest, tax, depreciation, and amortization (EBITDA) to reach between €24.1 billion and €24.5 billion by 2027, representing a compound annual growth rate of 7% from the 2022 baseline of €17.3 billion. Ordinary net profit is projected to rise to between €7.1 billion and €7.5 billion, reflecting an average annual increase of around 11% from €4.3 billion in 2022.

Raising dividend plan

Enel plans to revise its dividend policy upwards, promising a minimum payout of €0.46 per share, with the potential to increase up to 70% of ordinary net profit. The strategy also focuses on improving operational efficiency, targeting €1.5 billion in savings by 2027 through process optimization and innovative business models. Sustainability remains a central pillar, with Enel committing to reduce greenhouse gas emissions and close all coal plants by 2027, aligning with the Paris Agreement goals. The ultimate aim is to achieve net-zero emissions by 2040. CEO Flavio Cattaneo stated, "Between 2025 and 2027, our focus will be on core activities and flexible capital allocation, increasing investments primarily in regulated assets with predictable returns to support the acceleration of the energy transition. We will also continue enhancing efficiency and profitability, exploring new business opportunities to drive growth."