RWE (RWE) Q1 2025 earnings summary

Executive summary

• Solid Q1 2025 financial performance with adjusted EBITDA of EUR 1.3 billion and adjusted net income of EUR 500 million, despite weak wind conditions in Europe and lower electricity prices.

• Full-year 2025 guidance confirmed; share buyback program of EUR 1.5 billion ongoing, with the first EUR 500 million tranche to be completed by month-end.

• Offshore portfolio optimization advanced with sale of 49% equity stakes in major North Sea and Thor projects, expected to close by end of Q2 2025.

• Strategic partnership formed with Norges Bank Investment Management for offshore wind projects.

• Investment program reduced by EUR 10 billion to EUR 35 billion through 2030, with a higher required rate of return due to increased risk, especially in the US.

Financial highlights

• Adjusted EBITDA for Q1 2025 was EUR 1.3 billion, down from EUR 1.7 billion year-over-year.

• Adjusted net income was EUR 500 million; adjusted EPS was EUR 0.68.

• Offshore wind EBITDA: EUR 380 million, down year-over-year due to 33% lower generation volumes and lower hedge prices.

• Onshore wind and solar EBITDA: EUR 496 million, with U.S. capacity up to 11.2 GW from 9.3 GW year-over-year.

• Flexible generation EBITDA: EUR 376 million; supply and trading EBITDA: EUR 15 million, reflecting a weak quarter.

• Adjusted operating cash flow: EUR -1.15 billion, impacted by seasonal working capital effects and CO2 certificate purchases.

• Net debt increased to EUR 15.9 billion at end of Q1 2025, mainly due to investments and seasonal effects.

• Free cash flow was negative at EUR -4.98 billion, reflecting high capex and seasonal outflows for emission allowances.

Outlook and guidance

• 2025 adjusted EBITDA expected between EUR 4.55–5.15 billion; adjusted net income guidance: EUR 1.3–1.8 billion; adjusted EPS: EUR 1.8–2.5.

• Dividend target: EUR 1.2 per share.

• Net debt at year-end expected below Q1 level and under 3x leverage target, with consensus around EUR 14 billion.

• Guidance incorporates weak wind conditions in Q1; remainder of year assumes normalized weather.

• Net investments for 2025 projected to be below 2024’s EUR 10 billion, with focus on wind, solar, and battery projects.