Company Reports

European Union gas storage was at 63% on Aug. 25, 17% below the average of the last five years. This has boosted short-term European gas and power prices.

Ahead of the final publication due on Aug. 13, RWE prereleased solid first-half results. The adjusted net income jumped 62% year on year to EUR 1.26 billion, 28% above the company-compiled consensus. The firm raised its net income guidance for 2026 and 2027 by 22% and 14%, respectively.

RWE announced on June 22 that it agreed to increase its stake in German electricity transmission grid operator Amprion by 35% to 55% for EUR 3.6 billion and completed a EUR 4 billion capital raise to fund the deal at an average price of EUR 54.

Under a large asset swap with E.ON in 2020, RWE exchanged its retail and networks businesses for a 15% stake in E.ON and its renewables assets. Consequently, RWE became the second-largest global offshore wind player. With the acquisition of Consolidated Edison's clean-energy business in 2023, RWE became one of the largest renewables firms in the US. About 70% of RWE’s EBITDA will come from wind and solar from 2027 onward. This means a derisked profile with more earnings visibility. However, amid mounting investor 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. In March 2026, RWE rolled over its investment plan. While keeping the total amount of EUR 35 billion unchanged, it raised the medium-term EPS guidance and increased US investments to capitalize on high growth in electricity demand, thereby supporting power purchase agreement prices.

RWE’s first-quarter EBITDA increased by 15% year on year to EUR 1.6 billion, in line with the company-compiled consensus. Adjusted EPS jumped by 25% to EUR 0.85. The group confirmed its 2026 guidance, including EPS in a EUR 2.20-EUR 2.90 range.

Under a large asset swap with E.ON 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 one of the largest renewables firms in the US. About 70% of RWE’s EBITDA will come from wind and solar from 2027 onward. This means a derisked profile with more earnings visibility. However, amid mounting investor 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, while raising its internal rate of return target to above 8.5% from 8%. In March 2026, RWE rolled over its investment plan. While keeping the total amount of EUR 35 billion unchanged, it raised the medium-term EPS guidance and increased US investments to capitalize on high growth in electricity demand, thereby supporting power purchase agreement prices.

The UK government announced on April 21 that it will increase the electricity levy by 10% to 55% to push renewables power producers exposed to wholesale power prices to switch to contract-for-difference as of next year. SSE, Centrica, Orsted, and RWE are trading 2%-4% higher at the time of writing.

RWE's 2025 adjusted earnings per share declined 21% to EUR 2.48, 7% ahead of company-compiled consensus. The firm rolled over its business plan from 2030 to 2031, guiding for EUR 4.40 in EPS that year and implying a 10% compound annual growth rate. Shares were up 3% at the time of writing.

The UK government awarded a record 8.4 gigawatts of offshore wind capacity in Allocation Round 7. RWE emerged as the largest winner with 6.9 GW. SSE secured 1.4 GW of capacity. Orsted, the current leader in the UK market, got nothing.

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.

The European utilities sector increased by nearly 8% since the end of September, outperforming the market by 5% due to stabilizing interest rates, solid third-quarter results, and hopes that artificial intelligence growth will boost electricity consumption in Europe.

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.

RWE’s nine-month EBITDA decreased by 13%, a sharp improvement from a 26% decline in the first half, thanks to 26% growth in the third quarter, largely ahead of company-compiled consensus. Shares are up by nearly 6% at the time of writing. Full-year guidance was reaffirmed.

SSE becomes a European utilities top pick over RWE. The latter is up by 48% including the dividend year to date, outperforming European utilities by 16%. The former is up 21%, underperforming the sector by 11%.

European utilities shares decreased by 3% since the end of June, underperforming the market by about 6%.

RWE and Apollo Global Management agreed to form a joint venture over RWE's 25.1% stake in German transmission grid operator Amprion. Apollo will provide EUR 3.2 billion of equity that will be invested over time in Amprion. RWE will retain operational control of the JV.

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, with growing risks for renewables following Donald Trump's election and mounting investors' skepticism over the space, RWE announced a EUR 1.5 billion share buyback program in November 2024 and slashed its 2025-30 investments by 25% in March 2025. A key lever to the latter is the farm down of offshore wind farms under construction. 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.

RWE reported second-quarter adjusted EBITDA below the company-compiled consensus, marking a 30% decrease from last year’s level to EUR 832 million. Management confirmed its full-year guidance.

On July 1, 2025, the US Senate passed its version of the tax bill, with language tweaked to be more favorable toward renewable energy credits compared with the draft released over the previous weekend.

European utilities rose by 12% in the second quarter, outperforming the market by 10%.