ENIC Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

EBITDA: $685 million for the first half of 2026, up 4% year-over-year; Q2 EBITDA was $262 million, down $32 million from Q2 2025.

Net Income: $272 million for H1 2026, an 11% increase year-over-year; Q2 net income rose 54% due to lower depreciation and financial expenses.

Funds From Operations (FFO): Nearly $500 million for H1 2026, a 24% increase year-over-year; Q2 FFO increased by 28%.

CapEx: $328 million invested in H1 2026, more than double the previous year, with a focus on renewable energy and battery energy storage systems (BESS).

Gross Debt: $3.8 billion, a 1.4% decrease from December 2025.

2Strategic Updates and Business Highlights

Hydro Generation: Lower than last year due to weak rainfall; however, a recovery is expected in the second half of 2026, with an annual target of 10.7 TWh.

Portfolio Management: Increased thermal generation by 5% to 3.6 TWh, supported by a firm gas supply agreement from Argentina and additional LNG volumes secured.

Regulatory Developments: Approval of the Electricity Tariff Protection Bill, which includes mechanisms for tariff settlements and investments in grid resilience, expected to enhance cash flow visibility by approximately $70 million.

Battery Storage Projects: Approximately 0.5 GW under construction, with ongoing efforts to enhance flexibility and renewable integration.

3Forward Guidance and Outlook

Hydro Generation Outlook: Confidence in achieving the 10.7 TWh target due to improved hydrological conditions and snow accumulation.

Regulatory Framework: The Electricity Tariff Protection Bill is anticipated to provide greater tariff certainty and support future investments in grid resilience.

Operational Readiness: Prepared for potential impacts from El Niño, with contingency measures in place.

4Challenges and Points of Concern

Hydrological Conditions: Weaker than expected rainfall has impacted hydro generation, although recovery is anticipated.

Free Market Sales Decline: Notable decrease in sales to mining customers, attributed to specific adjustments rather than structural changes.

Regulatory Uncertainties: While the Electricity Tariff Protection Bill is positive, implementation details remain to be finalized, which could affect future operations.

5Notable Q&A Insights

Electricity Tariff Protection Bill: Key elements include addressing past tariff settlements and extending the tariff cycle to 2030, enhancing regulatory predictability.

Portfolio Strategy: Emphasis on flexibility through battery storage and long-term contracts to manage market volatility and support growth.

Hydro Generation Guidance: Management remains confident in achieving hydro targets despite past challenges, with expectations of a neutral or wet year ahead.

Gas Supply Concerns: Management reassured that gas supply risks are mitigated through a diversified contract portfolio.

Mining Demand: The decline in demand from mining companies is seen as a temporary adjustment rather than a long-term trend. This summary encapsulates the key financial metrics, strategic initiatives, forward guidance, challenges, and insights from the Q&A session, providing a comprehensive overview of Enel Chile's performance and outlook for Q2 2026.