RWE AG (RWEOY) Q1 2025 Earnings Call Highlights: Strong Start Amidst Challenging Conditions

In This Article:

  • Adjusted EBITDA: EUR1.3 billion for Q1 2025.

  • Adjusted Net Income: EUR500 million for Q1 2025.

  • Share Buyback Program: EUR1.5 billion, with the first EUR500 million tranche to be completed by the end of the month.

  • Offshore Wind Adjusted EBITDA: EUR380 million, impacted by weak wind conditions and lower hedge prices.

  • Onshore Wind and Solar EBITDA: EUR496 million, with significant capacity additions in the US.

  • Flexible Generation Adjusted EBITDA: EUR376 million, with lower earnings due to normalized prices.

  • Supply & Trading Result: EUR50 million, due to lower trading performance.

  • Adjusted Operating Cash Flow: Minus EUR1.15 billion, affected by seasonal effects and changes in provisions.

  • Net Debt: Increased to EUR15.9 billion, influenced by investments and seasonal impacts.

  • Investment: EUR2.7 billion net in Offshore Wind, Onshore Wind, and Solar business growth.

  • 2025 Outlook: Adjusted EBITDA expected between EUR4.55 billion and EUR5.15 billion; Adjusted Net Income between EUR1.3 billion and EUR1.8 billion; Adjusted EPS between EUR1.8 and EUR2.5.

  • Dividend Target: EUR1.2 per share for 2025.

Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • RWE AG (RWEOY) reported a solid start to 2025 with an adjusted EBITDA of EUR1.3 billion and adjusted net income of EUR500 million, despite weak wind conditions.

  • The company's EUR1.5 billion share buyback program is progressing well, with the first EUR500 million tranche set to be completed by the end of the month.

  • RWE AG successfully sold a 49% equity stake in its Nordseecluster and Thor offshore projects, significantly reducing cash investments by approximately EUR4 billion.

  • The company's Offshore Wind projects, including the 1.4 gigawatt Sofia project in the UK, are on track, with first power expected in the second half of the year.

  • RWE AG has commissioned 500 megawatts in its Onshore Wind and Solar business in Q1 2025, with more than 95% of the offtake secured.

Negative Points

  • Weak wind conditions in Europe led to a 33% decrease in Offshore Wind generation volume compared to the previous year.

  • The Supply & Trading business had a weak start to 2025, with a Q1 result of only EUR50 million due to lower trading performance.

  • Net debt increased to EUR15.9 billion due to investments and seasonal impacts on adjusted operating cash flow.

  • The adjusted operating cash flow was negative EUR1.15 billion at the end of Q1, driven by seasonal effects and changes in provisions.

  • RWE AG's Flexible Generation segment saw lower earnings in line with normalized prices, with an adjusted EBITDA of EUR376 million.