Enel Américas: Resilient Results, New Buyback, and a Lingering Regulatory Cloud

Q2 2026 delivers double-digit growth, but the ANEEL process and El Niño remain key watchpoints.

ENELAM.SN · Earnings Call · 2026-07-30

Solid Quarter, Solid Execution

Enel Américas wrapped up a strong second quarter, with CEO Giuseppe Turchiarelli emphasizing “positive results across all our businesses” — Giuseppe Turchiarelli, CEO · 2026-07-30 and pointing to EBITDA of $1.25 billion, up 18% year-on-year. Net income jumped 31% to $0.25 billion, while funds from operations rose 12% to $0.66 billion. The company continues to prioritize grid investments, with CapEx of $537 million and Net RAB growing 12% at constant exchange rates. Electricity distributed reached 24.3 terawatt hours, reflecting the scale of its regulated footprint. Notably, shareholders approved a new buyback program of up to 5% of the share capital, signaling confidence in cash generation and capital allocation.

Regulatory Crosswinds

The biggest overhang remains the ANEEL administrative process regarding Enel São Paulo distribution concession. The CEO acknowledged the uncertainty: “the administrative procedure remain ongoing, and there is still no final recommendation from ANEEL to the Ministry of Mines and Energy” — Giuseppe Turchiarelli, CEO · 2026-07-30. Management presented final arguments on July 23 and awaits next steps. In Argentina, a new energy bill advancing through Congress could address the frozen-tariff regulatory asset, offering potential relief. Meanwhile, Brazil's regulation on renewable curtailment compensation provides more legal certainty for the sector.

El Niño and Hydro Resilience

On the El Niño phenomenon, the company struck a confident tone, highlighting its diversified hydropower portfolio and thermal resilience:

Well, let me say that, of course, Enel Colombia is closely monitoring this phenomenon. As of today, we don't have any material impact to be reported for what concern our financial target.
Giuseppe Turchiarelli, CEO · 2026-07-30

This contrasts with prior years when hydrological stress squeezed working capital, a theme that has recurred across calls.

Capital Allocation and Guidance

CFO Rafael de la Haza reiterated the full-year 2026 guidance: “For the moment, we confirm our 2026 financial guidance for this year that the company announced in February 2026.” — Rafael de la Haza Casarrubio, CFO · 2026-07-30 With net debt up 25% since year-end due to working capital and FX, management expects the pressure to ease in the second half—a familiar promise. The new buyback, however, marks a shift toward direct shareholder returns while maintaining the 30% payout.

Contrast with Prior Calls

The themes of working capital and energy losses echo earlier quarters. In 2022, management noted “the impact of total networking capital was $978 million” — Rafael de la Haza, Investor Relations · 2022-05-02, and in 2021 they acknowledged “In terms of losses, this is an important issue regarding the pandemic” — Aurelio Bustilho, Chief Financial Officer (CFO) · 2021-05-03. Today, the company is far more comfortable on liquidity, but the regulatory dossier remains unresolved. The resilience in results and the fresh buyback suggest confidence, yet the ability to navigate the ANEEL process and El Niño will determine whether this quarter's momentum translates into sustained value creation.