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RWE AG Reports Higher Net Profit but Lower Revenue for 2024

RWE AG sees higher net profit in 2024, but revenue dips. With net income soaring to 5.14 billion euros from 1.52 billion, investors should weigh their options carefully. Adjusted EBITDA dropped due to weak revenues, impacting future growth expectations.

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AI Rating:   5
RWE AG recently reported fiscal 2024 results revealing important metrics for investors. **Earnings Per Share (EPS)** showed a significant increase, rising to 6.91 euros from 2.04 euros year-over-year, indicating strong profitability for shareholders despite other challenges. However, **Adjusted Net Income** dropped to 2.32 billion euros, and the adjusted EPS fell to 3.12 euros per share, down from 5.51 euros last year, reflecting underlying pressures on the business. **Adjusted EBITDA** also saw a concerning decline from 7.75 billion euros to 5.68 billion euros, signaling lower operational performance amidst weak revenues. The total revenue was reported at 24.22 billion euros, considerably lower than the previous year's 28.52 billion euros. This decline in revenue, paired with reduced electricity sales margins, is likely to affect the company’s immediate performance. Looking towards fiscal 2025, the company projects adjusted net income between 1.3 billion euros and 1.8 billion euros, alongside an adjusted EBITDA forecast of 4.55 billion euros to 5.15 billion euros, both of which are expected to be lower than the prior year. This cautious outlook highlights potential challenges ahead, potentially leading to investor wariness. Despite these challenges, RWE has reaffirmed its long-term EPS targets, aiming for around 3 euros per share in 2027 and 4 euros per share by 2030. The company has plans to increase dividends by 5% to 10% annually through to 2030, which may appeal to income-focused investors. For fiscal 2024, the proposed dividend of 1.10 euros per share is a slight increase from the previous year, suggesting a commitment to returning value to shareholders even amidst fluctuating earnings. Investment plans are also undergoing changes, with RWE aiming to invest 35 billion euros net from 2025 to 2030, which is 10 billion euros less than previously planned—indicating a shift towards stringent risk management and higher return expectations.
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