MILAN, February 23, 2026, 12:20 CET — Regular session
- Enel shares surged roughly 5% in Milan after the company rolled out a larger investment plan for 2026-28, grabbing investors’ attention.
- Company is boosting spending, but also unveils a fresh €1 billion buyback and aims for dividend growth.
- Leverage heads higher—attention turns to funding, execution, and regulation.
Enel surged in Milan on Monday, with shares climbing roughly 5.6% to trade near 9.59 euros.
Enel’s rally is significant: the group is working to persuade investors it can boost spending, keep dividends climbing, and still manage its balance sheet. For European utilities, it’s an early signal of how the market could value larger grid and renewables investments this year.
Enel plans to pour roughly 53 billion euros into investments over 2026 to 2028, steering close to half into its power grids and allocating around 38% to renewables. Renewables alone are set to get about 20 billion euros. The group expects the ramp-up in capex and bigger shareholder payouts will push net debt to nearly three times EBITDA by the end of the period, up from a 2.5 multiple projected for end-2025. JPMorgan noted, “the market is more focused on growth than on balance sheet.” Reuters
Shares in Enel jumped, catching attention as one of the top risers of the session. Across Europe, the broader market drifted lower as investors grappled with another round of trade-policy jitters.
Cash returns are now front and center. Enel’s latest buyback kicks off Feb. 23, running through July 31 at the latest. The plan caps spending at 1 billion euros and targets up to 150 million shares—roughly 1.48% of the company’s share capital—slated for cancellation.
Funding only tells part of the story. On Sunday, Enel’s board cleared as much as 12 billion euros in bonds and bank loans, available through March 31, 2027—proceeds earmarked for refinancing debt coming due, and backing growth and investment plans.
Enel’s strategic plan targets roughly 15 gigawatts of fresh renewable capacity by 2028. The company plans to ramp up investment in grids and renewables, focusing on long-term PPAs and battery storage in addition to wind. “A sharp acceleration in growth,” is how chief executive Flavio Cattaneo described the plan. Enel stuck with its EPS target of 0.80-0.82 euros by 2028 and outlined an annual dividend-per-share increase of about 6%.
Analysts wasted no time digging into the figures. Barclays’ Peter Crampton and his team described the EPS guidance as “significantly stronger than what the market currently prices in,” highlighting upticks in investment along with a more defined earnings path. Energy Connects
The route ahead stays bumpy. Extra leverage squeezes flexibility if policy shifts, if borrowing costs climb, or if power prices dip. And with larger projects, the risk rises: delays, budgets drifting higher—especially if supply chains tighten once more.
Now, attention shifts to the buyback’s kickoff this week—investors are eyeing whether Enel can deliver on the upbeat tone from Monday. The March 19 annual report and profit allocation proposal come next, with the shareholder meeting scheduled for May 12.
