4 REPORT AND FINANCIAL STATEMENTS 2025 Letter to shareholders and other stakeholders

Paolo

Sca

irm

Dear shareholders and stakeholders,

In 2025 Enel continued to progress along the strategic

guidelines outlined by the 2025-2027 Business Plan, con-

solidating a more solid capital structure and regaining

the financial flexibility required for long-term sustainable

growth.

With around 68 GW of managed renewable capacity,

Enel confirmed its position as the world’s largest re-

newable energy operator,

as well as the largest elec-

tricity distribution company in 2025,

with networks

serving about 69 million end users. Enel also has the

largest customer base in the retail sector,

with 54 mil-

lion customers.

Confirming the strong performance achieved since

2023, Enel’s stock posted an increase of approximate-

ly 29% in 2025, with a TSR above 37%. Moreover, the

Enel Group distributed nearly €6 billion in dividends to

shareholders, in addition to nearly €2 billion in share

buybacks.

1. Group of reference: listed companies not predominantly state-owned.

As confirmed by our purpose statement “Build the future

through sustainable power”, in addition to focusing on

performance and financial results, we also promote a fair

and inclusive energy transition, with an integrated ap-

proach focused on local communities, institutions, sup-

pliers, customers, workers and shareholders.

Enel’s commitment to sustainability is strengthened by

a solid and transparent governance model, ensuring in-

tegrity and responsibility in managing corporate activi-

ties, as confirmed by the Group’s consistent inclusion in

the world’s main sustainability rankings and indexes.

The macroeconomic environment

The global economy showed resilience in 2025, despite

persistent geopolitical tensions and a redefinition of in-

ternational trade relations. The gradual decline in inflation,

as well as fiscal and industrial policies aimed at strength-

ening competitiveness and energy security, supported

growth with positive effects on the labor market.

Letter to

shareholders

and other

stakeholders

lavio Cattaneo

hief Executive Officer and General Mana

REPORT AND FINANCIAL STATEMENTS 2025 5

68 GW

Managed renewable capacity

In 2025, the wholesale price of electricity in Italy (Prezzo

Unico Nazionale - PUN) came to €115.9/MWh, up 7% com-

pared with 2024 (€108.5/MWh), reflecting the increase in

the price of natural gas and the rise in the prices of CO

emission allowances, which affected the costs of thermo-

electric generation, which sets the price for over 60% of

the hours. Domestic demand was covered by domestic

generation for approximately 85%, and by net imports for

about 15%.

In Spain, the average annual price in the wholesale elec-

tricity market (“pool”) was €65.3/MWh, up 4% compared

with €63/MWh in 2024, but still lower than in most Eu-

ropean countries (except for France), thanks to renew-

ables and nuclear power capacity. Price developments

were characterized by high volatility: the daily peak was

reached on January 20 (€144.9/MWh), while the annual

low was recorded on April 19 (€1.72/MWh), coinciding

with high renewable generation and weak demand. Af-

ter the blackout of April 28, combined-cycle gas gener-

ation increased (+27.8%) to provide stability and security

to the system, while the share of renewables in the mix

remained stable at 40%, supported by a 12.5% growth in

photovoltaic.

The macroeconomic environment improved in the euro

area, driven by the recovery of households’ purchasing

power and investments in infrastructure, defense and

energy transition, which offset the weakness of interna-

tional trade. In the United States, domestic demand, fiscal

support, and investments in technological innovation have

helped absorb geopolitical shocks, supporting a high-

er-than-expected growth rate despite trade tariffs.

In Latin America, economic growth was overall better

than expected. Brazil and Colombia benefited from the

resilience of domestic demand; in Chile, inflation has

returned to target, boosting confidence, while in Ar-

gentina, concrete signs of macroeconomic stabilization

emerged. Nonetheless, divergences in monetary policy

paths remain, and financial conditions remain tight in

some economies.

As regards the commodities market, European gas

prices increased in the first part of 2025, driven by

the recovery in demand due to cold temperatures and

pressures to fill storages, while they normalized in the

second part of the year. Overall, prices were higher than

in 2024.

Coal prices decreased due to lower demand for elec-

tricity generation, while the price of Brent oil decreased

by 15% compared with 2024, to an annual average of

around $68/bbl, reflecting limited growth in global de-

mand and stable supply. In 2025, the price of CO

(EUA

ETS) closed higher than the previous year, at an average

of around €74/ton (up 13% compared with 2024), on

the back of decreasing supply of emission allowances

and expectations of a significant annual deficit in the

EU ETS.

69 million

End users

6 REPORT AND FINANCIAL STATEMENTS 2025 Letter to shareholders and other stakeholders

Performance

Enel’s 2025 financial year ends with solid results and the

achievement of the annual targets communicated to the

market, with ordinary EBITDA at €22.9 billion – slightly

higher than 2024, despite lower contributions associated

with the disposals in 2024, and in line with the guidance

communicated to the markets – and ordinary net profit at

€7.0 billion, above the upper end of the guidance range.

The dividend to be proposed to shareholders for 2025

amounts to €0.49 per share, 4% higher than in 2024. In

2025, the FFO (funds from operations)/net financial debt

ratio is equal to 26%, up from 25% in the previous year,

while the net financial debt/ordinary EBITDA ratio stands

at 2.5x, well below the sector average. This restored finan-

cial strength allows us to have the financial flexibility re-

quired to seize growth and value generation opportunities

in a highly dynamic environment.

Main events

Enel continues its growth path in renewable generation

capacity, up by 2,8 GW

(of which around 0.6 GW of bat-

tery storage) thanks to the development of new plants

(greenfield) and the acquisition of already operating as-

sets (brownfield), reaching a total installed renewable ca-

pacity of approximately 68 GW, generating 142 TWh/year.

In Italy, assets commissioned included the Fusina plant, a

former coal-fired plant converted to a 0.8 GW next-gen-

eration, high-efficiency CCGT, which, at full capacity, will

generate approximately 4 TWh.

As regards the evolution of the Italian energy sector, Enel

played a leading role by participating in the first MACSE

auction (the electricity storage capacity procurement

mechanism), launched by Terna for the construction of

new storage plants in Southern Italy. The auction ended

on September 30, 2025, and assigned a total of 10 GWh

of capacity, 67% of which to Enel.

Enel continues to focus on distribution grids through

significant capital expenditure in their resilience, quality,

and digitalization, essential both for the energy transition

process and to address the increasingly frequent and

severe weather events associated with climate change.

Capital expenditure on grids exceeded €7 billion, up by

about 20% compared with 2024.

2. Of which 2.6 GW of consolidated capacity alone.

3. A “prosumer” (a blend word of “producer” and “consumer”) is an individual or a company that not only consumes goods or services, but also produces

them, e.g. by installing photovoltaic panels to generate electricity.

The fast-paced transformation of the energy system

forces us to rethink the model for managing grids, rein-

forcing contacts and proximity to customers, also with a

significant hiring plan involving over 3,700 new people.

The role of grids is increasingly central in energy tran-

sition. Today, 88 GW of distributed renewable capacity

is connected to our grids, coming from approximate-

ly 2.7 million producers and prosumers,

of which nearly

390,000 were added in 2025.

In particular, over €4.3 billion were invested in Italy in 2025,

of which over €1.1 billion from National Recovery and Re-

silience Plan funds (NRRP), to achieve distributed renew-

able capacity of 2.88 GW, higher than the NRRP target of

2.5 GW.

2025 was a year of change for the retail division, which

was renamed Enel Commercial to reflect an identity more

aligned with its commercial role across the Group and to-

wards all customers: individuals, businesses, industry and

government. In a constantly changing market context, Enel

Commercial has strengthened its long-term leadership

through an increasingly dynamic use of data and relation-

ships, to support rapid commercial decisions and a greater

capacity to create value on the Group’s integrated margin.

The division has improved and strengthened customer

value management models and tools, to improve the resil-

ience of its customer base in a highly volatile/highly com-

petitive scenario, characterized by increasing regulatory

complexity.

At the same time, it has further strengthened its com-

mitment to customer protection, in response to grow-

ing fraudulent activities in both Italy and Iberia. In 2025, a

number of dedicated anti-fraud campaigns were devel-

oped and launched, including Enel’s new free-toll short

number 140, a clear and recognizable point of reference

for customers in Italy, supporting transparency, security,

and proximity.

In October 2025, the Enel Group established Lene, a dig-

ital company aimed at the B2C market and designed for

digital customers: it features a fully digital experience, a

rapid onboarding process, and advanced customer sup-

port, supported by AI-based virtual assistants. Lene was

established to respond to new consumer habits, quickly

adapting its offering portfolio to market needs.

Letter to shareholders and other stakeholders REPORT AND FINANCIAL STATEMENTS 2025 7

Also in 2025, Enel formalized the establishment of

Nuclitalia, a new company owned by Enel (51%), Ansaldo

Energia (39%) and Leonardo (10%), which represents the

main reference in Italy for research into new generation

nuclear power. The company is charged with the analy-

sis of SMR (Small Modular Reactor) and AMR (Advanced

Modular Reactor) technologies, evaluating their maturity,

supply chain and regulatory and financial conditions, to

support future industrial decisions and policy-makers.

Enel believes that new generation nuclear power can

support the achievement of decarbonization goals by

streamlining the Italian electricity system with a more

balanced mix ensuring greater energy independence,

long-term stability, environmental sustainability, and

lower system charges.

Enel Global Services

has consolidated a more efficient

and integrated operational model, strengthening the

Group’s performance. ICT reorganization has generated

significant benefits in terms of cost optimization and ser-

vice quality, also thanks to increasing adoption of artifi-

cial intelligence solutions. Procurement has combined a

consistent approach focused on sustainability and value

with the search for new sourcing models and enabling

technologies. Global Real Estate and General Services

supported the development of a global governance to

maximize the value of the real estate portfolio, improve

services and business infrastructure. Finally, the estab-

lishment of the Business Transformation Project unit has

further strengthened the contribution to the industrial

development and competitiveness of the Group.

In line with the Paris Agreement, we continue our de-

carbonization path towards zero net direct and indirect

emissions across our entire value chain by 2040, struc-

tured into a set of Science Based Targets initiative (SBTi)

certified targets. In 2025, absolute direct and indirect

greenhouse gas emissions amounted to approximate-

ly 62.5 MtCO

2eq

, down by 10% on 2024 (down by 67% on

2017, the baseline year for the SBTi certification).

In 2025, the Group continued to reinforce its financial

structure, building on balanced capital management, the

optimization of funding costs, and efficient and diversi-

fied access to financial markets, with a view to support-

ing the creation of sustainable value for shareholders. In

this context, Enel implemented a share buyback program,

extending from August 1 to December 16, 2025, during

which 122.5 million shares were repurchased for a total of

about €1 billion, with the aim of providing additional re-

4. Includes: Global Information & Communication Technologies, Global Procurement, Global Real Estate and General Services, Positioning and Transfor-

mation Office and Business Transformation Project.

muneration to shareholders as a result of the cancellation

of treasury shares purchased for this purpose.

In order to ensure further flexibility in liquidity manage-

ment, Enel and Enel Finance International entered into a

new five-year €12 billion revolving credit line. During 2025,

Enel Finance International successfully placed senior

bond issues on the European and US markets for a total of

€2 billion and $4.5 billion, with an overall demand exceed-

ing the equivalent of €17 billion, confirming the Group’s

financial solidity. This was in addition to a €2 billion issue

of hybrid instruments by Enel and the subscription of fi-

nancing with development banks and export credit agen-

cies for approximately the equivalent of €2 billion, further

expanding the diversification of financing sources.

In 2025, the Enel Group finalized two acquisitions, in Spain

and in the United States, in line with its new growth strat-

egy in renewables, which also includes investment in al-

ready operating brownfield assets in order to maximize

portfolio value and reduce risks.

More specifically, in Spain Endesa Generación finalized

the acquisition of the entire capital of Corporación Ac-

ciona Hidráulica SL from Corporación Acciona Energías

Renovables, a company belonging to the Acciona Group,

acquiring a portfolio of 34 hydro plants with total installed

capacity of 626 MW and increasing the Group installed

hydro capacity in Iberia to over 5.3 GW.

In the United States, Enel increased its consolidated re-

newable capacity by 285 MW, through a swap transaction

finalized by Enel Green Power North America (EGPNA) with

Gulf Pacific Power.

Finally, in line with the Group’s strategy to offer customers

a portfolio of bundled solutions with energy, products and

services, the subsidiary Endesa Energía SAU signed an

agreement with MasOrange, a leading operator in Spain,

to offer energy and telecommunications services in Spain.

This agreement includes, among other things, the acqui-

sition of Energía Colectiva SL, a company with digital and

technological expertise and over 350,000 customers in

the electricity and gas sector.

Strategy and forecasts for 2026-2028

As stated in the Strategic Plan for 2026-2028, the Enel

Group will focus on three strategic priorities:

8 REPORT AND FINANCIAL STATEMENTS 2025 Letter to shareholders and other stakeholders

• accelerating growth in countries with stable environ-

ments, focusing on grids, renewables and final custom-

ers, through greenfield and brownfield investments;

• maximizing capital productivity through optimal allo-

cation as well as efficient and effective management of

economic resources;

• ensuring a balanced risk/return profile in order to

achieve improved EPS (ordinary earnings per share)

while maintaining rigorous financial discipline.

The new Strategic Plan for 2026-2028 provides for a to-

tal gross capex of about €53 billion, an increase of about

€10 billion compared with the previous Plan.

Of these, €26 billion are to be allocated to the Integrated

Businesses, where the Group expects a strong acceler-

ation of investments in Renewables, reaching about €20

billion, in geographical areas characterized by significant

growth in electricity demand. These investments are ex-

pected to add a total of 15 GW of renewable capacity,

of which about 9 GW through greenfield projects and

about 6 GW through brownfield opportunities. More than

75% of the new capacity will be accounted for by wind

and programmable technologies, such as battery energy

storage systems. The Group will reach over 80 GW of in-

stalled renewable capacity by 2028.

As regards customers, the Group confirms their centrali-

ty and intends to increase their loyalty and value through

bundled offers, with the aim of increasing the customer

base on the free market (electricity, gas and optical fiber)

to about 26 million in 2028 from about 23 million in 2025.

The Group has planned total capital expenditure of over

€26 billion on grids, which will foster a 22% growth in

the Group’s Regulated Asset Base (RAB), from about

€47 billion at the end of 2025 to about €58 billion in

2028.

The 2026-2028 Strategic Plan aims at further improving

the Group’s risk/return profile, fostering more visible and

predictable results. Cumulative Group ordinary EBITDA

over the Plan period is expected to come to about €74

billion, and approximately 90% will derive from regulated

or contracted activities.

The Group also expects an increase in EPS to between

€0.80 and €0.82 in 2028, up from about €0.69 in 2025,

with a CAGR (Compound Average Growth Rate) of about

6%. DPS is also expected to increase in line with expected

EPS growth, by approximately 6% in terms of CAGR be-

tween 2025 and 2028.

Moreover, in order to provide shareholders with addition-

al remuneration, the Company’s Board of Directors ap-

proved the execution of a new tranche of the share buy-

back program for a total of up to €1 billion, implementing

the resolution of the Shareholders’ Meeting of May 22,

2025, which authorized the purchase and subsequent

cancellation of treasury shares for a total outlay of up to

€3.5 billion.

As regards environmental sustainability, the Group in-

tends to continue to pursue the reduction of direct and

indirect greenhouse gas emissions, in line with the Par-

is Agreement and the 1.5 °C scenario, as certified by the

SBTi, and confirm the objective of achieving net zero

emissions across all Scopes by 2040, while continuing to

safeguard the social and economic structure of commu-

nities through its Just Transition plan.