RWE (RWE) Q4 2024 earnings summary

Executive summary

• Delivered strong operational and financial performance in 2024, with adjusted EBITDA (€5.7bn) and EPS (€3.1) above guidance midpoint.

• Introduced a €1.5bn share buyback program and confirmed increased dividends, targeting €1.2/share for 2025.

• Reduced 2025–2030 investment plan by 25% (€10bn) due to market uncertainty, focusing on stricter investment criteria and higher return requirements.

• Committed €13bn net cash investments for 2025–2027, maintaining high flexibility in capital allocation from 2026.

• Confirmed adjusted EPS targets for 2027 and 2030, with 18% CAGR expected for 2025–2027.

Financial highlights

• Adjusted EBITDA for 2024 reached €5,680m (+3% vs. guidance midpoint); adjusted EPS for 2024 was €3.1, exceeding guidance.

• Adjusted operating cash flow in 2024 was €5,888m; expected to average €5bn annually from 2025–2027.

• Maintained strong balance sheet with leverage at 2x in 2024, targeting 3.0–3.5x for 2025–2027.

• Depreciation included a one-off effect of -€2.1bn on U.S. assets.

• High visibility on earnings growth, low sensitivity to power prices.

Outlook and guidance

• 2025 group guidance: adjusted EBITDA €4,550–5,150m, adjusted net income €1,300–1,800m, adjusted EPS €1.8–2.5, DPS €1.20.

• 2027 guidance: adjusted EBITDA €6,250–6,850m, adjusted net income €1,850–2,350m, adjusted EPS €2.6–3.4.

• EPS expected to grow at 18% CAGR from 2025–2027, reaching €3/share; €4/share targeted for 2030.

• Dividend to increase by €0.10 to €1.2/share in 2025; 5–10% annual growth targeted.

• Offshore wind EBITDA CAGR of 24% from 2025–2027; onshore wind and solar EBITDA CAGR of 20%.