RWE (RWE) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 financial performance at the upper end of guidance, with adjusted EBITDA of €5.1 billion and adjusted net income of €1.8 billion, driven by strategic priorities and robust project delivery.

• Announced a €35 billion net investment plan for 2026–2031, focusing on US power generation and German flexible generation, with targeted 12% annual EPS growth and 10% annual dividend growth.

• Expanded generation portfolio by commissioning 2.8 GW new capacity in 2025 and increasing electricity generation by 4% year-over-year.

• Confirmed dividend proposal of €1.20 per share for 2025, with a targeted 10% annual increase going forward.

Financial highlights

• 2025 adjusted EBITDA reached €5.1 billion; adjusted net income was €1.8 billion (upper end of guidance); adjusted EPS at €2.48.

• Leverage ratio at 2.1, well below guidance range, reflecting prudent balance sheet management.

• Gross investments in 2025 totaled €10.8 billion; net investments €4.0 billion.

• Book gain from the sale of a UK data center project contributed to EBITDA.

• Equity ratio improved to 41% from 34% year-over-year.

Outlook and guidance

• 2026 adjusted EBITDA expected between €5.2–5.8 billion; adjusted net income €1.55–2.05 billion; EPS midpoint €2.55.

• Dividend for 2026 planned at €1.32 per share, a 10% increase.

• Long-term plan to invest €35 billion net between 2026–2031, targeting 65 GW generation capacity and EPS growth to €4.40 by 2031.

• Targeting 12% CAGR in adjusted EBITDA and EPS through 2031; dividend growth increased to 10% per annum.

• 2031: 75% of cash flow expected to be contracted.