Spain's Naturgy 9M profit rises on energy prices; lifts 2026 outlook

Overview

• Spain energy utility's 9M26 sales and net income rose yr/yr

• Company benefited from elevated energy prices and volatility in gas and electricity markets

• Naturgy upgraded FY26 EBITDA and net income guidance

Outlook

• Naturgy raises FY26 EBITDA guidance to €5.6 bln

• Company expects FY26 net income attributable to parent around €2.2 bln

• Naturgy expects to close year with net debt below €13 bln

Result Drivers

• ENERGY PRICES AND VOLATILITY - Elevated and volatile gas and electricity prices supported Naturgy's results

• DISTRIBUTION NETWORKS - Strong growth in distribution networks driven by new remuneration framework and tariff updates

• GENERATION PORTFOLIO FLEXIBILITY - Higher CCGT output and increased renewable capacity contributed to performance

Company press release: Full Story

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the multiline utilities peer group is "buy."

• Wall Street's median 12-month price target for Naturgy Energy Group, S.A. is €31.50, about 4.6% above its October 28 closing price of €30.10

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 13 three months ago

Reuters Recommended Reads

• Oct 28 - Spain's Endesa confirms outlook after 15% profit increase

• Oct 28 - Spain's Redeia increases power grid investments by 19%

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)