Naturgy posted record profits exceeding €2.023 billion in 2025, a 6.4% increase and anticipates similar results for 2026 barring unforeseen circumstances, the company announced this week. The results reflect a resilient performance despite geopolitical tensions and macroeconomic uncertainty impacting energy markets.
The Spanish energy group reported a stable EBITDA of €5.434 billion, a slight decrease of 0.6% year-on-year, attributed to higher gas and electricity prices. Naturgy highlighted the diversification of its business and a balanced risk profile as key factors in its performance. The company noted a decoupling between gas and oil prices, with oil averaging lower in 2025 compared to the previous year.
Strong cash flow generation enabled Naturgy to increase its free float to around 18% through a share buyback program, facilitating its re-inclusion in major MSCI indices. Free cash flow rose by 58.1% to €2.242 billion, after accounting for the €2.332 million invested in the buyback.
Naturgy intends to increase its dividend payout to shareholders. The final dividend for 2025 will be €1.77 per share, with a complementary dividend of €0.57 per share to be distributed in March. The company has committed to a minimum dividend of €1.70 per share in 2025, increasing to €1.80 in 2026 and €1.90 in 2027, contingent upon maintaining a ‘BBB’ credit rating.
Changes are also occurring within Naturgy’s shareholder structure and board composition. Following the reduction in BlackRock’s stake and the restructuring of the Rioja shareholder group, IFM will expand its representation on the board from two to three members, with Lars Bespolka joining as a new member. BlackRock’s representation will decrease from three to two members. Francisco Reynés is proposed for renewal as president until 2030, along with Jaime Siles and Ramón Adell.
A new Strategic Vision Committee, chaired by Reynés, will be established, including representatives from all major shareholders: CriteriaCaixa, IFM, Corporación Financiera Alba, BlackRock, and Sonatrach. This committee underscores the company’s commitment to long-term strategic planning with broad stakeholder input.
The Networks business delivered stable results, driven by increased regulatory remuneration in Spanish electricity distribution and tariff updates in Latin America, although these were partially offset by currency depreciation. The company’s thermal generation business benefited from increased demand for its combined cycle plants following stabilization measures implemented after disruptions earlier in the year.
However, Naturgy expressed caution regarding the profitability of renewable energy projects, noting that returns are not meeting earlier expectations. The company cited increasing risk premiums and a growing number of hours with zero pricing as contributing factors. Reynés indicated that administrative delays and social opposition are hindering the development of renewable projects in Spain, extending timelines and impacting profitability.
Naturgy also highlighted the increasing reliance on combined cycle plants as renewable energy penetration increases, emphasizing their role in providing critical grid balancing and support services. While renewable capacity improved moderately, increased capacity in Spain was offset by lower hydroelectric and wind production.
The company’s Commercialization business experienced lower results compared to 2024, which benefited from a favorable court ruling regarding the collection of the social electricity tariff.
In 2025, Naturgy invested €2.142 billion, primarily in distribution networks and renewable projects. Networks accounted for 47% of total investment, up from 40% in 2024, while renewables represented 36% compared to 44% the previous year. Installed renewable capacity reached 8.1 gigawatts (GW), with over 1.2 GW of additional capacity currently under construction.
Net debt at the end of 2025 reached €12.317 billion, a 1% increase from €12.201 billion in the previous year. The net debt-to-EBITDA ratio remained at 2.3x, even after the impact of the share buyback.
Looking ahead, Naturgy is cautiously optimistic about hydrogen, acknowledging its potential but noting that current electricity prices make it uncompetitive with other energy sources. The company indicated a preference for developing biomethane as a short-term priority.
