Italian energy giant Enel Spa announced a €1 billion share buyback program alongside mixed first-half 2025 results, but investor skepticism persists. While adjusted net profit rose 4.4% to €3.8 billion, reported net profit fell to €3.4 billion from €3.85 billion due to one-off gains from asset sales in the prior year. Adjusted EBITDA edged up marginally to €11.5 billion, missing market expectations despite strong performance in Spain, where revenue reached €40.8 billion. The company reaffirmed its full-year targets, projecting adjusted EBITDA of €22.9–23.1 billion and adjusted net profit at the upper end of €6.7–6.9 billion.
Market Reaction Defies Optimism
Despite the buyback—a clear signal of management’s confidence in undervalued shares—Enel’s stock dipped 1.73% to €7.599 in Milan trading. Analysts suggest the muted operational growth overshadowed the financial maneuver, reflecting broader sector challenges. The disconnect highlights investor caution: even solid fundamentals and aggressive capital returns may not suffice without stronger earnings momentum. Enel’s ability to stabilize its stock hinges on delivering sustained operational improvements amid a turbulent energy market.