RWE’s first-half results disappointed investors, with adjusted EBITDA plunging over 25% to €2.1 billion—well below analyst expectations. Weak wind conditions in Europe hampered renewable energy output, while soaring gas prices squeezed margins in electricity futures. The energy trading division collapsed by nearly 80%, exacerbating the downturn. Despite reaffirming its annual EBITDA forecast of €4.55–5.15 billion, RWE’s shares fell 3.3%, extending recent losses.
Debt Rises Amid Expansion Push
The company continues heavy investments in renewables, deploying €2.5 billion in H1 but driving net debt to €15.5 billion. Plans for 35GW of new capacity by 2030 remain, though scaled back by 25%. Analysts remain divided, with some maintaining bullish price targets despite the "broad-based miss." Meanwhile, RWE advances projects in the UK and sustains its €1.5 billion share buyback program to shore up confidence.