Q2 ’26
Filed Aug 4, 2026Excellent 2Q performance and enhanced guidance; increased shareholder returns
Group proforma adjusted EBIT doubled y-o-y to €5,375 million, adjusted net profit attributable to Eni’s shareholders rose 106% to €2,333 million, underlying production growth was 11% y-o-y, and Eni raised production, cash flow and share-buyback guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales from operationsother | €24,375 million | – | 30% |
| Operating profit (loss)other | €1,898 million | – | 63% |
| Adjusted operating profit (loss)non-GAAP | €3,516 million | – | 86% |
| Main JV/Associates adjusted EBITnon-GAAP | €1,859 million | – | 135% |
| Proforma adjusted EBITnon-GAAP | €5,375 million | up 52% on a sequential basis | 100% |
| Adjusted profit (loss) before taxesnon-GAAP | €3,857 million | – | 75% |
| Adjusted net profit (loss)non-GAAP | €2,434 million | – | 107% |
| Net profit (loss)other | €3,376 million | – | – |
| Net profit (loss) attributable to Eni's shareholdersother | €3,319 million | – | – |
| Adjusted net profit (loss) attributable to Eni's shareholdersnon-GAAP | €2,333 million | – | 106% |
| Hydrocarbon productionother | 1,789 kboe/d | – | 7% |
| Underlying production growth, net of price effectsother | 11% y-o-y | – | 11% y-o-y |
| Installed capacity from renewables at period endother | 6.0 GW | – | 33% |
| Cash flow from operations before changes in working capital at replacement costnon-GAAP | €4,469 million | – | 61% |
| Net cash provided by operating activitiesother | €4,270 million | – | – |
| Organic capital expenditureother | €1,838 million | – | (9%) |
| Free cash flownon-GAAP | €1,453 million | – | – |
| Net borrowings before lease liabilities ex IFRS 16other | €11,271 million | – | 11% |
| Shareholders' equity including non-controlling interestother | €56,930 million | – | 7% |
| Proforma gearing before lease liabilities ex IFRS 16non-GAAP | 10% | – | – |
| Gearing before lease liabilities ex IFRS 16other | 0.17 | – | – |
| Gearing after lease liabilities ex IFRS 16other | 0.23 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Exploration & ProductionProforma adjusted EBIT was driven by favorable volume/mix effects, cost discipline, higher crude oil realized prices in USD and higher gas realizations, partly offset by exchange-rate translation. | €5,861 million | – | 25% |
| Global Gas & LNG Portfolio and PowerGGP benefited from continued asset portfolio optimizations and specific benefits relating to renegotiations and settlements; Power was affected by a one-off item in the 2025 comparison. | €4,058 million | – | 18% |
| EniliveBiorefining benefited from an improved market scenario despite the Venice plant shutdown. | €6,917 million | – | 45% |
| PlenitudeProforma adjusted EBIT benefited from renewables volume growth and the halting of depreciation pending the proposed deconsolidation transaction. | €2,075 million | – | 10% |
| Refining, Chemicals and Sites in transformationRefining benefited from a constructive margin scenario, while Chemicals improved on restructuring and plant closures but remained affected by weak demand and competitive pressure. | €6,441 million | – | 42% |
FY’26 outlook
- NoteUnderlying oil & gas production growth: around 5%
- NoteGGP adjusted proforma EBIT: over €1.4 bln
- NoteEnilive FY proforma adjusted EBITDA: €1.3 bln
- NotePlenitude FY proforma adjusted EBITDA: €1.3 bln
- NoteYear-end installed renewable capacity: 6.5 GW (Plenitude @100%)
- NoteBiorefinery capacity: 2.1 MTPA plus 1.5 MTPA under construction (net Enilive)
- NoteBrent scenario: 85 $/bbl
- NoteSERM refining margin: 14 $/bbl
- NoteTTF gas price: 50 €/MWh
- NoteExchange rate EUR/USD: 1.16
- NoteAdjusted CFFO: €15 bln
- NoteGross capex: €7 bln
- NoteNet capex: less than €5 bln
- NoteProforma gearing: at the lower end of the 10-15% guided range
- Note2026 share repurchase plan: €3.4 bln
- NotePlanned 2026 dividend: €1.1 per share (up 5% vs. 2025)
- NoteAn extraordinary dividend is expected to be defined in October and paid in the fourth quarter if the stated refining-margin condition is met.
Capital returns
- Cash returns to shareholders were €1.35 bln, comprising the final tranche of the ‘25 dividend (€0.79 bln) and start of the ‘26 buyback program (€0.56 bln).
- The 2026 share repurchase plan is expanded to €3.4 bln, up 20% from last quarter already revised guidance of €2.8 bln.
- The new buyback amount represents more than double the initial guidance of €1.5 bln at the budgeted cash flow.
- Confirmed the planned 2026 dividend of €1.1 per share (up 5% vs. 2025).
- The first tranche of the provision in place of the 2026 dividend is €0.27 per share, with an ex-dividend date of 21 September 2026 and payment on 23 September 2026.
- As of July 17, 2026, around 39 mln shares have been purchased, for a cash outlay of €860 mln.
What drove it
- Quarterly underlying y-o-y production growth was 11%, adjusted for portfolio transactions and price effects, driven by project ramp-ups and start-ups in Norway, Congo, Mexico, Angola and Indonesia/Malaysia.
- E&P proforma adjusted EBIT was €4,769 mln, up 97% vs. 2Q ’25, supported by volume/mix, cost discipline, oil realizations and gas realizations.
- Worldwide gas sales were 10.75 bcm, up 19% from the comparative period, while LNG sales were 2.9 bcm, up 4%.
- Enilive proforma adjusted EBIT was €295 mln, more than double compared with 2Q ’25, supported by biorefining market conditions.
- Plenitude renewable energy production was 2.2 TWh, up 47% y-o-y, and installed renewable capacity was 6.0 GW, up 33% y-o-y.
- The Standard Eni Refining Margin averaged 8.3 $/bbl versus 4.8 $/bbl in 2Q ’25.
Concerns
- Plenitude proforma adjusted EBITDA was €233 mln, down 9% vs. 2Q ’25, despite proforma adjusted EBIT growth.
- Power proforma adjusted EBIT was €35 mln, down 47% vs. the comparative period; the filing states the 2025 comparison was affected by a one-off item.
- Total refinery throughputs on own account were 5.10 mmtonnes, down 20% y-o-y, with lower volumes linked to maintenance and product unavailability connected to the closure of Strait of Hormuz.
- Chemical product sales were 0.61 mmtonnes, down 15% y-o-y, due to lower production and weaker demand. Chemicals recorded a proforma adjusted loss of €65 mln.
- Net borrowings before lease liabilities ex IFRS 16 increased by €1,743 million from December 31, 2025 to June 30, 2026.
- Group operating profit included €1,769 mln of special-item charges in Q2 ’26, including €1,287 mln of impairment losses.
What to watch
- Delivery of FY’26 underlying oil and gas production growth of around 5%.
- Execution of the planned Plenitude deconsolidation in 3Q ’26, while Eni retains a 65% stake.
- Completion of the AC Europe II SCSp partnership and receipt of the $2 bln capital contribution in the third quarter.
- Progress toward 6.5 GW of year-end installed renewable capacity and 2.1 MTPA of biorefinery capacity.
- The refining-margin condition for an extraordinary dividend expected to be defined in October and paid in the fourth quarter.
- Execution of the €3.4 bln 2026 share repurchase plan through April 2027.
Balance sheet and cash flow
- Net cash provided by operating activities was €4,270 million in Q2 ’26 and €5,697 mln in IH ’26.
- Free cash flow was €1,453 million in Q2 ’26 and €873 million in IH ’26.
- Organic capex was €1,838 million in Q2 ’26 and €3.7 bln in IH ’26.
- Net borrowings before lease liabilities ex IFRS 16 were €11,271 million as of June 30, 2026, compared with €9,528 million as of December 31, 2025.
- Shareholders' equity was €56,930 million as of June 30, 2026, compared with €52,787 million as of December 31, 2025.
- Gearing before lease liabilities ex IFRS 16 was 0.17 as of June 30, 2026; proforma gearing stood at 10%.
- Eni entered into a partnership agreement with AC Europe II SCSp in exchange for a $2 bln capital contribution to be cashed-in the third quarter.
Analysis
Eni reported a sharply stronger second quarter under IFRS, with sales from operations of €24,375 million, operating profit of €1,898 million and net profit attributable to Eni’s shareholders of €3,319 million. Underlying performance was materially stronger: proforma adjusted EBIT doubled y-o-y to €5,375 million and adjusted net profit attributable to Eni’s shareholders rose 106% to €2,333 million. The filing attributes the improvement to better realizations on equity production, favorable volume and mix, higher biofuels margins, chemicals restructuring outcomes and other cost efficiencies.
E&P was the primary earnings engine. Hydrocarbon production was 1,789 kboe/d, up 7% from the comparative period, while quarterly underlying y-o-y production growth, net of price effects, was 11%. E&P proforma adjusted EBIT reached €4,769 million, up 97% y-o-y, as volume and mix, cost discipline and higher crude and gas realizations outweighed exchange-rate translation effects. The Searah joint venture was launched in June and is described as immediately accretive to second-quarter cash flow and production, while Eni also advanced Baleine Phase 3, Greater PAJ and Cronos.
The portfolio outside upstream also contributed. GGP and Power generated €503 million of proforma adjusted EBIT, up 30% y-o-y, supported by GGP portfolio optimization, renegotiations and settlements. Enilive generated €295 million, up 129%, while Plenitude generated €226 million, up 70%; Plenitude’s EBIT included the halting of depreciation pending its proposed deconsolidation. Refining moved to a €80 million proforma adjusted profit from a €9 million loss, but Chemicals still posted a €65 million proforma adjusted loss amid weak demand, higher input costs and competition. The filing also notes that polyethylene spreads returned to unprofitable territory in July.
Cash generation funded investment and distributions. Q2 adjusted net cash before changes in working capital at replacement cost was €4,469 million, organic capex was €1,838 million and free cash flow was €1,453 million. Eni returned €1.35 billion in the quarter through the final tranche of the 2025 dividend and the start of the 2026 buyback program. Net borrowings before lease liabilities ex IFRS 16 were €11,271 million at June 30, 2026, while proforma gearing was 10%, at the low end of the 10%-15% target range.
Management raised FY’26 operating and financial targets. Underlying oil and gas production growth is now expected to be around 5%, GGP adjusted proforma EBIT is guided to over €1.4 bln, Enilive adjusted EBITDA is guided to €1.3 bln and adjusted CFFO is expected to amount to €15 bln under the stated commodity and exchange-rate scenario. The buyback program was increased to €3.4 bln, alongside confirmation of the planned 2026 dividend of €1.1 per share. The key execution points are the higher production target, portfolio monetizations and Plenitude deconsolidation, continued transition-business growth, and refining and chemicals conditions.
Management, verbatim
Our focus on executing our strategy has driven excellent results in 2Q ’26 underpinned by our diversified portfolio that provides us a wide range of options and a perspective of profitable growth across different businesses of the energy mix.
Claudio Descalzi, Eni CEO
The strength of this business and our world-class E&P capabilities have driven an outstanding 11% of underlying production growth.
Claudio Descalzi, Eni CEO
As a consequence of these excellent results, we are raising our distribution policy by further €600 mln, to €3.4 bln of share buyback.
Claudio Descalzi, Eni CEO
Not in the filing
stated, not guessed- GAAP or IFRS earnings per share
- Non-GAAP earnings per share
- Gross margin
- GAAP or IFRS gross margin
- Forward revenue guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Prior-release outlook section for formal actual-versus-prior-guidance comparisons
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.