RWE Raises 2026‑27 Guidance, Shares Up 2.4%

RWE Raises 2026‑27 Guidance, Shares Up 2.4%

Shares of German power producer RWE rose 2.4% in Frankfurt trading on Wednesday following the company's announcement that it has upgraded its earnings outlook for both 2026 and 2027.

For 2026, RWE now expects adjusted EBITDA in the range of €5.8 billion to €6.4 billion, compared with the prior guidance of €5.2 billion to €5.8 billion. Net income for 2026 is projected at €1.95 billion to €2.45 billion, up from the earlier range of €1.55 billion to €2.05 billion, which translates to a midpoint earnings‑per‑share (EPS) of €2.95, higher than the previous midpoint of €2.55.

For 2027, the company lifted its net income target to €2.2 billion‑€2.7 billion, versus the earlier €1.9 billion‑€2.4 billion range, implying a midpoint EPS of €3.15, up from €3.05 previously.

RWE also disclosed preliminary first‑half results, reporting adjusted EBITDA of €3 billion, representing roughly a 45% increase year‑on‑year, and adjusted net income of €1.3 billion, a 60% rise from the prior year.

Goldman Sachs analysts, led by Alberto Gandolfi, noted that the pre‑release of strong first‑half results and the upgraded 2026‑27 guidance are likely to trigger positive earnings upgrades by the street. The analysts highlighted two positive one‑off items in 2026—FlexGen and Trading—totaling approximately €400 million, and said the guidance uplift also reflects underlying improvements in the Renewables business, the FlexGen segment, and the integration of Amprion.