EnBW Energie Baden-Württemberg (EBK) Q4 2024 earnings summary

Executive summary

• Achieved all FY 2024 goals, maintaining strong performance and meeting adjusted EBITDA guidance across all segments, supported by a robust, diversified, low-risk earnings base and significant progress in strategic initiatives.

• Focused on the energy transition with increased renewables capacity, grid expansion, and decarbonization, reaching key milestones ahead of schedule.

• Promoted to ESG Leader category with an AA rating from MSCI, reflecting environmental achievements and 59% renewables installed capacity.

Financial highlights

• Adjusted EBITDA reached EUR 4.9 billion, in line with guidance but down from EUR 6.4 billion in 2023, with 71% from low-risk grid and renewables activities.

• Adjusted net profit was EUR 1.5 billion, with a proposed dividend of EUR 1.60 per share, a 7% increase and a payout ratio of 29%.

• Capital expenditures exceeded EUR 6 billion, a 27% increase and the highest in company history, with almost 90% taxonomy-aligned.

• Net debt increased to over EUR 14 billion, mainly due to high net cash investments and growth projects.

• Retained cash flow at year-end was nearly EUR 2.3 billion, reflecting lower EBITDA and higher dividends.

Outlook and guidance

• 2025 adjusted EBITDA expected between EUR 4.8 billion and EUR 5.3 billion, with growth from new renewables capacity, grid expansion, and hydrogen-ready gas plants.

• Continued high investment levels planned, targeting at least EUR 40 billion between 2023 and 2030.

• Debt repayment potential for 2025 projected at 15%-18%, at the top end of the target range.

• Normalized energy market prices anticipated, with further ramp-up in e-mobility and B2B/B2C business dynamics.