RWE (RWE) Q2 2024 earnings summary

Executive summary

• Achieved strong financial performance in H1 2024, with adjusted EBITDA of €2.9 billion and adjusted net income of €1.4 billion, driven by renewables growth and rapid decarbonisation, despite normalization from an exceptional prior year.

• Over 10 GW of capacity under construction, with nearly 3 GW of renewable projects reaching final investment decision in H1 2024 and 0.7 GW commissioned.

• Record renewables electricity production up 20% year-over-year to 26 TWh, now 45% of total output; five lignite units (2.1 GW) closed.

• Offshore wind pipeline expanded by 4 GW through German auction wins at highly competitive prices.

• Long-term targets and Growing Green strategy confirmed, supported by stable European power and carbon markets and robust policy backing.

Financial highlights

• Adjusted EBITDA for H1 2024 was €2.9 billion, surpassing 50% of full-year guidance but down 30% year-over-year due to normalization.

• Adjusted net income reached €1.4 billion, exceeding 70% of full-year guidance but down from €2.4 billion in H1 2023.

• Net investments totaled €4.5 billion in H1, with 95% taxonomy aligned.

• Net debt increased to €11.4 billion, mainly due to growth investments and timing effects.

• Adjusted operating cash flow was €1.5 billion, influenced by seasonal working capital effects.

Outlook and guidance

• Full-year 2024 guidance confirmed at the lower end: Adjusted EBITDA €5.2–5.8 billion, Adjusted EBIT €3.2–3.8 billion, Adjusted net income €1.9–2.4 billion.

• Dividend target set at €1.10 per share for FY 2024.

• Segmental EBITDA guidance: Offshore Wind €1,450–1,850m, Onshore Wind/Solar €1,500–1,900m, Flexible Generation €1,800–2,200m, Supply & Trading €100–500m.

• EPS target for 2024 is €2.6–3.0, with a goal to reach €4 by 2030.

• Carbon emissions expected at 45–50 million tons for 2024, a reduction of over 40% from 2021, with further 60% reduction targeted by 2030.