More Data Center Deals Are Possible for RWE

Under a large asset swap with E.On completed in 2020, RWE exchanged its retail and networks businesses for a 15% stake in E.On and its renewables assets. With the acquisition of Consolidated Edison's clean-energy business in 2023, RWE became the fourth-largest renewables firm in the US with a solid solar footprint. About 75% of RWE’s EBITDA will come from wind and solar from 2028 onward. This means a derisked profile with more earnings visibility. However, amid mounting investors' skepticism about the space, RWE announced a EUR 1.5 billion share buyback program in November 2024 and slashed its 2025-30 investment plan by 25% in March 2025. RWE's management emphasizes it could to do more share buybacks in 2026 when it has more financial flexibility. Elliott Management, which amassed a 5% stake in RWE in April 2025, called for additional share buybacks earlier than 2026.