Energy major RWE reported a strong start to 2026 with significant growth in earnings, continued expansion of renewable energy projects, and sustained investment in offshore wind, solar, battery storage, and flexible generation assets.
Germany-based RWE confirmed its full-year guidance and dividend target while accelerating major energy transition projects across Europe.
RWE posted adjusted EBITDA of €1.631 billion in the first quarter of 2026, up 25 percent from €1.31 billion in the same period last year. Adjusted net income increased to €608 million from €505 million, while adjusted earnings per share rose to €0.85 from €0.68.
The company attributed the improved performance to stronger wind conditions in Europe, commissioning of new renewable energy assets, and compensation received from the Dutch government related to restrictions on coal-fired generation at the Eemshaven plant. Since March 2025, RWE has added 2.3 gigawatts of renewable and storage capacity.
Business Divisions Performance
RWE’s Offshore Wind division delivered adjusted EBITDA of €570 million in Q1 2026, compared with €380 million in Q1 2025. Higher production volumes driven by improved wind speeds supported the segment’s performance.
The Onshore Wind and Solar division generated adjusted EBITDA of €507 million versus €496 million a year earlier. Capacity expansion and favorable wind conditions offset negative currency conversion impacts and lower hedged electricity prices.
Flexible Generation emerged as the strongest-performing segment, with adjusted EBITDA rising to €657 million from €379 million. The increase included a €332 million compensation payment linked to limits on electricity production from coal-fired facilities in the Netherlands.
However, the Supply & Trading division reported a loss of €84 million compared with a profit of €15 million last year due to weaker trading performance. Despite this, RWE expects full-year earnings from the segment in the range of €100 million to €500 million.
Capex Investment and Project Pipeline
RWE invested €2.3 billion net during the first quarter as part of its aggressive renewable energy expansion strategy. The company plans total net investments between €6 billion and €8 billion for full-year 2026.
The utility currently has projects totaling 10.4 gigawatts under construction globally. Major projects include the Sofia offshore wind farm in the United Kingdom and the Thor offshore wind project in Denmark, where initial turbines are already generating electricity.
Chief Financial Officer Michael Muller said RWE aims to add more than 4 gigawatts of new generation capacity during 2026 as the company strengthens its renewable energy portfolio and supports Europe’s energy transition.
Strategy Focused on Renewables, Electrification and AI Demand
RWE said its long-term strategy centers on renewable energy investments, battery storage systems, and flexible power generation to address rising global electricity demand driven by electrification and artificial intelligence workloads.
The company operates in more than 20 countries with around 20,000 employees and continues to prioritize offshore wind, onshore wind, solar, and battery storage expansion. Its integrated energy trading business complements the renewable portfolio and supports earnings diversification.
RWE also reaffirmed its commitment to decarbonization targets, including phasing out coal by 2030 and achieving net-zero emissions by 2040.
Outlook and Financial Guidance
For full-year 2026, RWE expects adjusted EBITDA between €5.2 billion and €5.8 billion, while adjusted net income is forecast between €1.55 billion and €2.05 billion. Adjusted earnings per share are projected in the range of €2.20 to €2.90.
The company confirmed its dividend target of €1.32 per share for 2026. Net debt of RWE stood at €15.6 billion at the end of March 2026 due to high capital expenditure and seasonal operating cash flow impacts.
BABURAJAN KIZHAKEDATH