Elecnor (ENO) AI Stock Analysis

• Market Cap: €2.40B
• Dividend Yield: 13%
• Average Volume (3M): 146.16K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.89
• Revenue Growth: 11.61%
• EPS Growth: -212.68%
• Country: ES
• Employees: 20,583
• Sector: General
• Sector Strength: N/A
• Industry: Industrial - Infrastructure Operations
• EPS (TTM): 0.71
• Shares Outstanding: 87,000,000
• 10 Day Avg. Volume: 217,874
• 30 Day Avg. Volume: 146,157
• PEG Ratio: -0.22
• Price to Book (P/B): 2.20
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 5.53
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 1.47
• Revenue Forecast (FY): €4.52B

• Rating: 67 Neutral
• Price Target: €31.00 ▲(26.79% Upside)
• Action: Reiterated Date: 03/01/26
• Date: Action: Reiterated 03/01/26

The score is driven primarily by improved financial resilience (lower leverage) and a strong 2025 free-cash-flow rebound, tempered by a sharp 2025 revenue decline and volatility in profitability/cash conversion. Technicals add support as price action is above major moving averages with positive momentum indicators, while valuation is helped by a very high dividend yield despite a moderate P/E.

Positive Factors

Improved leverage

Material deleveraging to ~0.23–0.37x debt/equity strengthens financial flexibility and lowers refinancing risk. This improved balance-sheet cushion supports bidding on large infrastructure projects, funding capex, and enduring short-term revenue swings without forcing distressed asset sales.

Strong cash flow rebound

A sharp 2025 cash flow recovery demonstrates the company's ability to convert project work into liquidity. Sustainable free cash flow supports reinvestment, working-capital needs and discretionary payouts, reducing reliance on external funding and improving resilience across business cycles.

Diversified infrastructure footprint

Broad exposure across renewables, telecom and water creates multiple revenue streams and access to public and private contract pipelines. This diversification cushions regional or sector downturns, provides cross-selling opportunities, and aligns with structural demand for energy transition and infrastructure modernization.

Negative Factors

2025 revenue decline

A sharp revenue contraction reduces operating leverage and long-term growth visibility. Lower top-line momentum can compress project backlog replenishment, pressure utilization and bargaining power with suppliers, and make multi-period planning and margin recovery more uncertain.

Volatile profitability & cash conversion

Inconsistent cash conversion and swings in reported margins undermine earnings quality and forecasting reliability. This lumpy performance raises the risk that strong single-year cash or income outcomes may not recur, complicating capital allocation, dividend policy and creditor assessments over the medium term.

Project-driven revenue lumpiness

Heavy reliance on project and contract wins makes revenues lumpy and dependent on tender cycles and public spending. Execution or bidding delays translate to sudden revenue swings and margin pressure, increasing sensitivity to macro policy and prolonging recovery from downcycles.

Elecnor Business Overview & Revenue Model

Company Description

Elecnor, S.A. engages in the infrastructure and concessions businesses in Spain and internationally. The company operates power transport lines and transformation substations; generates power from wind farms, as well as solar, combined cycle, and hydroelectric plants; and provides gas related services covering gas pipeline transportation and distribution. It also develops telecommunications infrastructures and systems; carries out turnkey projects covering electrification, signaling, interlock, communications, and control systems for railways, subways, trams, and trolleybuses; and offers technical, commercial, and ancillary services, as well as maintenance services. In addition, the company is involved in civil and industrial works, construction, and edification business; hydrological planning activities; operating water transportation and distribution networks; treatment and reuse of waste and sewerage; and water purification activities; and waste management, forestry, maintenance of green areas, street cleaning, and the maintenance and infrastructure conservation activities, as well as provides electromechanical systems; and turnkey solutions through its waste treatment engineering developments. Further, it acts as an installation contractor for buildings, cultural and recreational centers, airport and railway terminal buildings, hotels and hospitals, industrial plants, cogeneration and trigeneration plants, etc.; and designs, engineers, and develops solutions and integration systems in aerospace industry, and information and telecommunications technologies. Additionally, the company operates as a turnkey developer and operator of wind power farms; invests and develops solar photovoltaic and thermoelectric solar energy projects; and constructs and operates wastewater treatment plants. Elecnor, S.A. was incorporated in 1958 and is based in Madrid, Spain. Elecnor, S.A. is a subsidiary of Cantiles XXI, S.L.

How the Company Makes Money

Elecnor generates revenue through multiple streams, primarily from the execution of large-scale infrastructure projects in renewable energy, telecommunications, and water management. The company typically earns money through contract agreements for designing, building, and maintaining energy and telecommunications facilities. Key revenue sources include government contracts, private sector projects, and public-private partnerships, particularly in renewable energy initiatives. Elecnor also benefits from providing specialized engineering services and has established strategic partnerships with various stakeholders, including technology firms and energy companies, which enhance its project capabilities and market reach.

Elecnor Financial Statement Overview

Summary

Balance sheet strength has improved materially with much lower leverage (debt-to-equity down to ~0.23–0.37x in 2024–2025) and solid 2025 ROE (~11.7%). Cash flow rebounded sharply in 2025 (operating cash flow ~€474m; free cash flow ~€375m), but both profitability and cash conversion have been volatile, and 2025 revenue fell notably (-14.8% YoY), which caps the score.

Income Statement

Revenue growth has been inconsistent, culminating in a sharp decline in 2025 (-14.8% YoY) after modest growth in 2024 and stronger growth in 2021–2023. Profitability is mixed: 2025 shows modest margins (gross margin ~16%, net margin ~2.5%) while 2024 posted unusually high net income and net margin (~18.5%) despite negative EBIT margin, suggesting that earnings quality/recurrence may be uneven. Overall, the business demonstrates an ability to generate profits across the cycle, but margin volatility and the 2025 revenue contraction weigh on the score.

Balance Sheet

Leverage has improved meaningfully over time, with debt-to-equity falling from elevated levels in 2020–2022 (~1.3–1.7x) to much more conservative levels in 2024–2025 (~0.23–0.37x). Equity has remained sizeable relative to the asset base, providing a better cushion, and 2025 return on equity is solid (~11.7%). The key weakness is variability in profitability metrics (including an exceptionally high 2024 return on equity), which can make the balance-sheet strength look better or worse depending on earnings normalization.

Cash Flow

Cash generation improved strongly in 2025 with operating cash flow of ~€474m and free cash flow of ~€375m (up sharply versus 2024), indicating good cash conversion in the most recent year. However, cash flows have been volatile (negative free cash flow in 2020 and near-breakeven/negative in 2024), and free cash flow has not consistently tracked reported earnings (notably weak cash conversion in 2024 versus very strong reported net income). Overall, recent momentum is positive, but variability and occasional weak cash conversion temper the score.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.39B	3.81B	3.79B	3.39B	3.12B
Gross Profit	719.51M	1.87B	1.63B	1.57B	1.54B
EBITDA	298.16M	178.47M	200.98M	157.32M	269.10M
Net Income	110.73M	705.20M	110.06M	102.81M	85.88M
Balance Sheet
Total Assets	3.66B	3.61B	4.08B	3.56B	3.29B
Cash, Cash Equivalents and Short-Term Investments	782.55M	429.01M	336.87M	385.36M	399.64M
Total Debt	349.76M	270.31M	668.44M	1.04B	1.01B
Total Liabilities	2.72B	2.44B	3.15B	2.72B	2.65B
Stockholders Equity	943.10M	1.17B	906.45M	807.21M	609.26M
Cash Flow
Free Cash Flow	374.56M	-2.43M	111.51M	70.96M	98.47M
Operating Cash Flow	474.36M	94.45M	206.00M	226.87M	206.19M
Investing Cash Flow	-134.97M	963.31M	-268.06M	-128.55M	-99.96M
Financing Cash Flow	-230.08M	-1.04B	73.70M	-113.91M	-109.75M

Elecnor Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 24.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ES:ENO, the sentiment is Neutral. The current price of 24.45 is below the 20-day moving average (MA) of 28.21, below the 50-day MA of 26.76, and below the 200-day MA of 25.17, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 47.00 is Neutral, neither overbought nor oversold. The STOCH value of 60.54 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ES:ENO.

Elecnor Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FER	69 Neutral	€41.03B	28.65	69.30%	1.42%	5.75%	346.20%
ENO	67 Neutral	€2.40B	18.70	-6.79%	13.00%	11.61%	-212.68%
ACS	65 Neutral	€27.91B	22.99	20.71%	2.38%	25.47%	7.63%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
FCC	55 Neutral	€5.17B	―	5.28%	4.49%	5.00%	-64.19%
SCYR	53 Neutral	€3.36B	32.80	8.86%	5.28%	2.03%	-32.59%
OHLA	52 Neutral	€603.43M	297.92	0.29%	―	1.39%	72.34%