EnBW Energie Baden-Württemberg (EBK) Q3 2024 earnings summary

Executive summary

• Adjusted EBITDA for the first nine months of 2024 was €3.7 billion, down 24% year-over-year, with adjusted net profit attributable to shareholders at €1.3 billion, reflecting market normalization and lower power prices.

• Revenue for the period fell 22.7% to €26,771.7 million, mainly due to lower trading prices in electricity and gas despite higher sales volumes.

• Full-year 2024 EBITDA guidance was confirmed at both segment and group levels.

• Major progress in green transition projects, including offshore wind, hydrogen-ready power plants, and grid expansion, with an MSCI ESG rating upgrade to AA.

• Capital spending surged nearly 40% year-over-year, with significant investments in renewables, grids, and e-mobility.

Financial highlights

• Adjusted EBITDA reached €3.7 billion (down 24% year-over-year); adjusted EBIT was €2.5 billion (down 32%).

• Adjusted net profit attributable to shareholders was €1.3 billion; group net profit was €1,578.9 million (down 37.3%).

• Retained cash flow was €1.5 billion, down 54%, and net debt increased by 14% to €13.3 billion, mainly due to net cash investments of €3.4 billion.

• Gross cash investments rose 38% to €3.9 billion, with 85% directed to growth projects and 89% taxonomy-aligned capex.

• Equity ratio increased to 27.2% as of 30 September 2024.

Outlook and guidance

• Full-year 2024 adjusted EBITDA expected between €4.6 billion and €5.2 billion, with guidance confirmed for all segments.

• Sustainable Generation Infrastructure segment's adjusted EBITDA forecast to decline due to lower market volatility and prices; Renewable Energies expected to contribute €1.2–1.4 billion.

• System Critical Infrastructure segment's adjusted EBITDA expected to rise, driven by higher grid income and investment returns.

• Smart Infrastructure for Customers segment's adjusted EBITDA anticipated to increase, with market recovery in B2B/B2C commodity business.

• Net debt expected to rise further by year-end, with a high likelihood of a €3 billion capital increase in 2025.