In This Article:
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Adjusted EBITDA: EUR9 billion, reaching the upper end of guidance.
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Adjusted Net Income: EUR2.9 billion, reaching the midpoint of guidance.
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Total CapEx: EUR7.5 billion, a 16% increase year-over-year.
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New Connections: Approximately 500,000 new connections added in 2024.
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Digital Substations: Over 6,000 digital substations installed in 2024.
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RAB-Effective Investments: Increased by over 16% in 2024.
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Economic Net Debt: Approximately EUR41 billion.
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Leverage Factor: 4.5x, comfortably below the 5x promise.
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Cash Conversion Rate: 90% for 2024, expected to average 100% from 2024 to 2028.
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2025 Guidance: EBITDA of EUR9.6 billion to EUR9.8 billion; Adjusted Net Income of EUR2.85 billion to EUR3.05 billion.
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2028 Outlook: EBITDA of more than EUR11.3 billion; Adjusted Net Income of around EUR3.4 billion.
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Dividend Growth Target: Up to 5% per annum.
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CapEx Plan: Increased by EUR1 billion to EUR43 billion for Energy Networks.
Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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E.ON SE (ENAKF) delivered on its 2024 guidance with an adjusted EBITDA of EUR9 billion, reaching the upper end of the guidance range.
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The company increased its investments by EUR1 billion year-over-year to EUR7.5 billion, demonstrating strong growth momentum.
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E.ON SE (ENAKF) successfully added around 500,000 new connections and installed more than 6,000 digital substations in 2024.
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The company has made significant progress in digitization, standardizing over 90% of core components used in the power grid build-out.
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E.ON SE (ENAKF) has launched new flexible offerings in energy retail, enhancing customer experience and increasing customer loyalty.
Negative Points
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The ongoing war in Ukraine and volatile energy prices continue to pose challenges to E.ON SE (ENAKF)'s operations.
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The company faces rising geopolitical risks, which could impact future performance.
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There is uncertainty regarding regulatory returns for the next period starting in 2029, which could affect future investment plans.
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E.ON SE (ENAKF) needs to ensure that additional investments remain affordable to maintain societal acceptance of the energy transition.
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The company faces challenges in managing supply chain complexities and demographic changes, which could impact its ability to ramp up investments quickly.
Q & A Highlights
Q: Can you discuss the potential changes in the regulatory period and the impact of the German elections on E.ON? A: Leonhard Birnbaum, CEO, explained that while E.ON has positions on individual regulatory topics, the overall outcome must support the ability to attract private capital. Regarding the German elections, he noted that nuclear power is not a relevant topic and emphasized the importance of the regulator balancing affordability with necessary investments.