RWE stock: Strong nine-month earnings put 2026 outlook near upper end

RWE reported a strong performance for the first three quarters of 2026 on Wednesday, November 11, with all business segments contributing more than in the prior-year period. In its investor-relations release, the utility said the performance supports an expectation that full-year earnings will land towards the upper end of its existing forecast ranges.

Higher earnings across segments

Adjusted EBITDA increased 35 percent to 4.6 billion euros in the first nine months, from 3.4 billion euros a year earlier. Adjusted net income rose to 1.8 billion euros from 1.3 billion euros, while adjusted earnings per share advanced 42 percent to 2.52 euros from 1.77 euros.

The improvement was broad-based. RWE cited additional contributions from newly commissioned assets, more favourable wind conditions in Europe and stronger earnings in Supply & Trading. The company also benefited from higher margins and capacity payments in parts of its flexible-generation business. A compensation payment from the Dutch state supported that segment, while the prior-year period included a substantial contribution from the sale of a data-centre development project.

Guidance points to stronger finish

RWE confirmed its 2026 adjusted EBITDA forecast of between 5.75 billion and 6.35 billion euros and its adjusted net-income range of 1.95 billion to 2.45 billion euros. Management expects results towards the upper end of both ranges after strong trading in the second and third quarters. The dividend target remains 1.32 euros per share.

Supply & Trading is a particular swing factor. Its adjusted EBITDA reached 543 million euros in the first nine months, compared with 150 million euros in the prior-year period. RWE now expects the segment to exceed its former full-year range of 100 million to 500 million euros.

Investment remains the key trade-off

RWE invested 10.7 billion euros net in the first nine months. Net debt stood at 17.0 billion euros at September 30, after high investment spending and seasonal effects on operating cash flow. The company expects net debt to fall to about 12 billion euros by year-end, helped in part by the deconsolidation of its Vanguard West and Vanguard East offshore wind projects.

RWE and KKR have completed the equity close and project financing for the two UK projects, which have combined capacity of 2.8 gigawatts. The transaction leaves RWE with a 50 percent joint venture partner while supporting the company’s plan to expand renewable generation and battery-storage capacity. RWE said leverage should remain below its 3.0-times target at year-end.

German equities remain an important backdrop for investors following the DAX as energy prices, interest rates and infrastructure spending continue to shape utility valuations.

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