RWE Invests €2.7 Billion in Q1 2025 Despite Earnings Dip

RWE reported adjusted EBITDA of €1.3 billion and adjusted net income of €0.5 billion for the first quarter of 2025, in line with expectations but below last year’s strong Q1 results.

The year-on-year decline was mainly due to weaker wind conditions in Europe and lower margins in the trading and flexible generation segments. However, newly commissioned onshore wind, solar, and battery storage projects contributed positively to earnings.

RWE invested €2.7 billion net in Q1 as part of its growth strategy. The company now has 11.2 gigawatts of new capacity under construction across its global portfolio.

Segment Highlights:

• Offshore Wind: EBITDA dropped to €380 million from €548 million in Q1 2024 due to weak wind conditions and reduced prices for forward electricity sales.
• Onshore Wind/Solar: EBITDA rose to €496 million, up from €341 million. Growth was driven by new capacity and strong US electricity prices, despite poor wind in Europe.
• Flexible Generation: EBITDA normalized to €376 million, down from €552 million. Lower forward sales margins and reduced short-term optimisation income affected performance.
• Supply & Trading: EBITDA fell sharply to €15 million from €251 million, impacted by a weak start in proprietary trading.

As of March 31, RWE reported net debt of €15.9 billion, up from the end of 2024. The increase was driven by high capital expenditure and seasonal fluctuations in cash flow. Despite this, RWE said its financial position remains solid.

Total investments for 2025 are projected at €7 billion net—lower than 2024 levels. RWE expects to maintain its leverage ratio below the self-imposed ceiling of 3.0 (net debt to adjusted EBITDA).

Michael Müller, CFO of RWE AG added, “After a solid start to the year, we are reaffirming our full-year earnings forecast for 2025. We are making great progress in expanding our portfolio in a value-accretive manner. In the first three months of this year alone, we commissioned 600 megawatts of new generation capacity. And our construction projects are on schedule and on budget. This year and next, we will complete plants with a total capacity of 8 gigawatts, including our large-scale Sofia offshore wind farm in the United Kingdom.”