MILAN, February 23, 2026, 12:20 CET — Regular session
- Enel shares jump about 5% in Milan trade as investors digest a bigger 2026-28 investment plan
- Company pairs higher spending with a new €1 billion buyback and a dividend growth target
- Leverage is set to rise, putting focus on funding, regulation and execution
Enel shares jumped in Milan on Monday, lifting the stock price to around 9.59 euros, up about 5.6% on the day. (Investing)
The rally matters because Enel is trying to convince investors it can spend more, keep payouts rising and still stay in control of its balance sheet. It is also an early read on how the market will price bigger grid and renewables bets for European utilities this year.
Enel said it will invest about 53 billion euros in 2026-28, with about half for power grids and roughly 38% for renewables, and it flagged around 20 billion euros of renewables spending. It also said the push on capex and shareholder rewards would take net debt to about three times core earnings — measured by EBITDA, a proxy for operating profit — from a 2.5 multiple at end-2025; JPMorgan wrote the market “is more focused on growth than on balance sheet.” (Reuters)
The stock move stood out in a softer tape across Europe, where traders were weighing renewed trade-policy uncertainty, and Enel was singled out as one of the day’s biggest gainers. (Reuters)
The company has also put cash returns on the front page. Enel said a new buyback will run from Feb. 23 through no later than July 31, with a maximum outlay of 1 billion euros and up to 150 million shares, about 1.48% of share capital, with shares bought for cancellation.
Funding is part of the story. Enel’s board on Sunday authorised up to 12 billion euros of bond issuance and bank loans, through March 31, 2027, aimed at refinancing maturities and supporting growth and investment needs.
In the strategic plan documents, Enel said it expects to add about 15 gigawatts of new renewable capacity by 2028 and lift spending in both grids and renewables, leaning on long-term PPAs (power purchase agreements) and battery storage alongside wind. Chief executive Flavio Cattaneo said the plan showed “a sharp acceleration in growth,” while Enel reiterated an EPS target of 0.80-0.82 euros by 2028 and a dividend-per-share growth path of about 6% a year.
Analysts were quick to chase the numbers. Barclays analysts led by Peter Crampton called the EPS guidance “significantly stronger than what the market currently prices in,” pointing to higher investment and a clearer earnings trajectory. (Energy Connects)
Still, the path is not straight. More leverage leaves less room for policy surprises, higher funding costs or a slide in power prices, and bigger build-outs raise the risk of delays and budget creep — especially if supply chains tighten again.
Next up, investors will watch how the buyback begins this week and whether Enel’s follow-through matches Monday’s optimism, before the March 19 annual report and profit allocation proposal, and the shareholder meeting slated for May 12.
