RWE Aktiengesellschaft (ETR:RWE) used its annual press conference for fiscal 2025 to underscore what CEO Markus Krebber described as a “clear compass” in an uncertain geopolitical and policy environment, while reiterating that the utility met its 2025 financial guidance at the upper end. Executives pointed to a revamped strategy built around large-scale investment through the end of the decade, partnerships to support capital needs, and a portfolio mix that balances renewables with storage and flexible generation.
Management frames 2025 as a “decisive year” amid shifting frameworks
Krebber opened by arguing that resilience in energy markets depends on investing despite changing “rules of the game,” citing geopolitical tensions and policy debates as factors shaping capital allocation. He said RWE had adjusted plans where needed, including pausing some U.S. investment decisions “since summer 2025” amid debates about technologies and tariffs, then resuming activity after “clarity has returned” through U.S. legislative and regulatory developments he referenced as the “One Big Beautiful Bill” and “safe harbor rules.”
He also highlighted strategic partnerships with the Norwegian Sovereign Wealth Fund, Masdar and KKR to expand financial flexibility for offshore wind, and an Apollo partnership supporting capital requirements for transmission expansion through RWE’s stake in Amprion.
Investment plan: EUR 35 billion net through 2031, targeting a 65 GW portfolio
RWE said it plans to invest a net total of EUR 35 billion through 2031, aiming to grow its combined portfolio of renewables, battery storage and flexible generation to around 65 gigawatts. Management emphasized selectivity, describing a large pipeline that allows the company to prioritize projects with “manageable” risks and appropriate returns. Krebber said RWE expects an average internal rate of return of “over 8.5%” across its investment program.
The company outlined four primary investment areas over the next six years:
- U.S. power generation: RWE plans to invest about EUR 17 billion—nearly half of the total—adding nine gigawatts across onshore wind, solar, battery storage, and flexible generation (gas-fired peaking plants). Krebber later told reporters the share of the EUR 17 billion earmarked for gas is “perhaps 1%,” with the “lion’s share” going to renewables and storage. In a later exchange, management referenced around $1 billion for gas and said build-out would start modestly and could expand if successful.
- Flexible generation in Germany: RWE said it is prepared to build 3 GW of new hydrogen-ready gas-fired plants at former power plant sites with existing grid connections, and to expand battery storage. Management said about 400 MW of storage is already operating and 1.6 GW is under construction, with a further 2 GW that could be commissioned by 2030. RWE expects to invest roughly EUR 6 billion to EUR 9 billion in flexible generation by 2031, primarily in Germany.
- Offshore wind: RWE plans to add a net 5 GW by 2031 (RWE share), mainly in the North Sea, while continuing longer-term efforts in Japan and Korea with partners. Executives noted that installed capacity will be higher because projects are being developed with partners.
- Onshore wind and solar in core European markets: RWE targets an additional 5 GW in markets including Germany, the UK, Italy, France and Poland, investing around EUR 7 billion net. Management pointed to offtake structures such as two-sided Contracts for Difference.
Krebber also described opportunities linked to data center demand, including RWE’s prior sale of a UK data center project and ongoing work to develop additional sites benefiting from existing grid infrastructure.
2025 financial results: EBITDA EUR 5.1 billion, net income EUR 1.8 billion
CFO Michael Müller said 2025 results landed at the upper end of the company’s guidance. RWE reported:
- Adjusted EBITDA: EUR 5.1 billion
- Adjusted net income: EUR 1.8 billion
- Adjusted earnings per share: EUR 2.48
Müller said performance in the flexible generation segment was “particularly pleasing,” helped by the sale of a UK data center project planned for a former RWE power station site. He also noted a higher earnings contribution from RWE’s stake in transmission system operator Amprion.
Operationally, Müller said RWE commissioned more than 60 projects totaling 2.8 GW, with two-thirds of new capacity connected to the grid in the U.S. He added that RWE had more than 100 projects totaling 10.3 GW under construction worldwide.
Total gross investment in 2025 was about EUR 11 billion, with net investment (after divestment proceeds) of EUR 4 billion. The largest individual items included North Sea offshore wind projects Sofia, Thor and North Sea Cluster. Müller said Sofia would be commissioned later in the year and that Thor and North Sea Cluster were on track with first turbines generating during the year.
Müller said electricity production rose 4% year-over-year, but unusually low wind speeds in European core markets reduced generation from offshore and onshore wind farms. Gas-fired plants were used more than in the prior year, which management said underscored the value of a balanced mix. RWE also reported that carbon emissions from generation declined despite higher output.
Balance sheet, capital markets, and dividend policy
Management said RWE’s financial position remained “rock solid” despite high investment levels. Müller reported net debt was almost unchanged and leverage (net debt to adjusted EBITDA) was 2.1, below RWE’s self-imposed upper limit of 3. The equity ratio improved by seven percentage points to 41%.
RWE also highlighted capital markets access, including issuing two long-term green bonds of $1 billion each and issuing a hybrid bond for the first time in 10 years in two EUR 500 million tranches. Müller said order books were “heavily oversubscribed.”
For dividends, RWE plans to pay EUR 1.20 per share for the past financial year, up EUR 0.10 year-over-year. For fiscal 2026, the dividend target is EUR 1.32 per share, representing 10% growth. Krebber said RWE is raising its targeted dividend growth to 10% per year and expects adjusted EPS to rise to around EUR 4.4 by 2031, from EUR 2.48 currently.
Executives said a current share buyback program is expected to be completed by June 2026 and that they do not believe it will be continued beyond that date.
Guidance and policy commentary: markets, ETS, and energy security
For the current year, management guided to adjusted EBITDA of EUR 5.2 billion to EUR 5.8 billion and adjusted net income of EUR 1.55 billion to EUR 2.05 billion. Adjusted EPS was guided to a range of “EUR 220 to EUR 290” as stated in the discussion. For 2027, RWE forecast adjusted EBITDA of EUR 6.2 billion to EUR 6.8 billion and earnings per share of EUR 3.05.
Beyond the numbers, Krebber called for greater reliability in energy policy, warning that abrupt shifts can put investment on hold. He defended the EU Emissions Trading System as a market-based instrument and urged a “structured discussion” on adjustments, including limited allocations beyond 2030, targeted extensions of free allowances, and more effective use of CO2 pricing revenues to support industry. He also advocated reducing taxes and levies on electricity to accelerate electrification.
On geopolitical risks, executives discussed disruptions linked to the Middle East, noting higher prices and broader market implications. Management said RWE was not affected by force majeure from Middle Eastern gas supplies and that missing shipments were not part of its portfolio position. Krebber argued against gas price caps, saying price interventions in tight markets “will not help” and that support should instead focus on socially vulnerable groups.
On legacy generation, management reiterated that the lignite exit plan remains unchanged, with Krebber stating “2030, end of story.” RWE’s labor update indicated lignite activities had “just under 6,000 employees” currently, with about 500 job reductions in 2025, and a target range of 2,000 to 2,500 employees by 2030 alongside retraining and redeployment measures.
RWE also addressed nuclear topics, saying Germany’s nuclear chapter is “finished” and expressing interest in monitoring fusion developments, including work with partners at existing sites such as Biblis and Gundremmingen. Management characterized commercial fusion as a 2030s timeframe and said RWE’s role today is primarily providing site support and expertise while technology developers lead the investment decisions.
About RWE Aktiengesellschaft (ETR:RWE)
RWE Aktiengesellschaft generates and supplies electricity from renewable and conventional sources in Germany, the United Kingdom, rest of Europe, North America, and internationally. It operates through five segments: Offshore Wind; Onshore Wind/Solar; Hydro/Biomass/Gas; Supply & Trading; and Coal/Nuclear. The company generates wind, hydro, solar, nuclear, gas, and biomass electricity. It also trades in electricity, gas, and energy commodities; operates gas storage facilities; and engages in battery storage activities.
