E.ON surprises with solid figures: Dividend increases despite decline in net profit!

E.ON surprises with solid figures: Dividend increases despite decline in net profit!

On May 21, 2025, E.ON presents mixed results that have both positive and negative aspects. The company's sales increased by 11% to 25.5 billion euros in the first quarter of 2025, showing an encouraging trend. Adjusted Group EBITDA also grew by 18% to 3.2 billion euros. However, net profit is recorded at 529 million euros, a decrease of 9.4%. This development is due to higher expenses due to ongoing investments. In this context, the forecast for the full year remains unchanged: E.ON expects an adjusted EBITDA of between 9.6 and 9.8 billion euros and an adjusted consolidated net profit of between 2.85 and 3.05 billion euros.

The dividend was increased to 0.55 euros per share, an increase of 4%. This is the tenth dividend increase in a row, and the company is pursuing a progressive dividend policy until 2028. E.ON shares are robust and have recorded a performance of around 33% since the beginning of the year, with a closing price of 15.29 euros today. The rating agency Fitch has rated E.ON with BBB+ and a stable outlook, which provides additional confidence in the company's future development.

Strategic investments and future forecasts

E.ON is investing significantly in energy networks and sustainable customer solutions to benefit from the energy transition and secure future profits. CEO Leonard Birnbaum has announced that investments will be kept open until 2028 because some regulatory requirements have not yet been clarified. Nevertheless, the company's high profits in 2024, achieved through billions of dollars in investments, are more positive than originally expected.

Management plans to increase investment plans to 43 billion euros from 2024 to 2028, which represents an additional billion more than before. An adjusted operating profit of over 11.3 billion euros is forecast for 2028. Overall, the company expects that up to 78% of operating results are dependent on regulations, which illustrates the dependence on political conditions.

Market development and shareholder returns

In early trading after the earnings release, E.ON shares rose, meaning the company's market performance remains positive. Shareholders can expect distributions of over 4.5 billion euros, with the dividend being increased by 2 cents to 0.55 euros per share. Expectations are optimistic, especially with regard to the positive development of operating profit, which is estimated to be between 9.6 and 9.8 billion euros for 2024.

The excellent results and the strategy for the coming years show that E.ON continues to hold one of the leading positions in the German energy market. With around 12 million electricity and 2 million natural gas customers, the company is Germany's largest electricity supplier and network operator, with almost a third of the electricity distribution network being owned by it.

In summary, despite a decline in net profit in the first quarter, E.ON has a solid financial backing, supported by strategic investments and the positive market environment. Further developments and adjustments to regulatory framework conditions will be crucial for the company's future profitability.

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