EnBW – 2024 fiscal year: Integrated portfolio ensures good results and high investment in renewables and grid expansion

• Adjusted EBITDA of €4.9 billion in line with expectations
• Investment up 27% to €6.2 billion
• Renewables reach 59% of total generation capacity
• EnBW CEO Georg Stamatelopoulos: “Affordability, climate change mitigation and security of supply must be given equal weight”

Karlsruhe. EnBW Energie Baden-Württemberg AG systematically continued its investment drive to transform and decarbonize the energy system in the past fiscal year. Now the only large integrated energy company in Germany, EnBW serves all stages of the value chain, from generation and trading to grid operation and the sale of electricity, heating and gas.

The earnings trend predicted for 2024 has been confirmed: With adjusted EBITDA of €4.9 billion, Group operating earnings are in the middle of the forecast range of €4.6 billion to €5.2 billion. In the previous year, adjusted EBITDA amounted to €6.4 billion. As expected, Group operating earnings for the past fiscal year reflected the normalization of wholesale electricity and gas prices from exceptionally high levels.

EnBW CEO Georg Stamatelopoulos: “Our broad portfolio is what makes us successful. In the 2024 fiscal year, we achieved solid results that will enable us to continue our investment program. We always keep an eye on the overall system, understand every link in the value chain and are involved in almost every aspect of the energy industry. This enables us to react flexibly to market changes and external challenges. The goal is clear: The electricity sector is to be carbon-neutral by 2040, with EnBW making a significant contribution. On the way there, we believe that affordability, climate change mitigation and security of supply must be given equal weight. Only then will the transformation be successful.”

To this end, EnBW has retired or put into reserve a total of ten coal, oil and gas plants since 2013. Renewables now account for close to 59% of installed generation capacity – one year ahead of the strategic target of over 50% by 2025. The growing contribution from renewables is also reducing carbon emissions, with a 15% reduction in the carbon intensity of electricity generation compared to the previous year.

Thomas Kusterer, EnBW’s Deputy CEO and CFO: “The stable earnings are important in order to successfully drive the green transformation of our portfolio. We currently have over 1.5 gigawatts of renewable energy under construction and are investing heavily in the expansion of the transmission and distribution grids – above all in the SuedLink direct current line, which is scheduled to go into operation at the end of 2028. Thanks to our integrated portfolio, we are able to allocate investment among the segments for optimum return performance, resulting in solid financial performance and reliable returns. Our diversified lineup also allows us to smooth out market-driven fluctuations, thus increasing the resilience of our business and resulting in a balanced opportunity/risk ratio across the portion.”

The transition to a climate-friendly, decarbonized energy future requires high levels of investment. This is also reflected in the significant increase in EnBW’s gross investment. The company invested around €6.2 billion in 2024, almost 30% more than in the previous year.

Around 85% of investment spending went on growth projects, such as the 960 MW He Dreiht offshore wind farm and the construction of hydrogen-ready, flexibly dispatchable gas power plants. High levels of investment also went on the expansion of the electricity distribution and transmission grids. This also includes projects at EnBW subsidiary TransnetBW.

Net profit and dividend proposal

In line with adjusted EBITDA, the adjusted Group net profit attributable to the shareholders of EnBW AG amounted to €1.5 billion in the past fiscal year, compared to €2.8 billion in the previous year. A dividend of €1.60 per share will be proposed at the Annual General Meeting. This corresponds to a 7% increase on the previous year (€1.50 per share). The dividend ratio for the 2024 fiscal year is therefore a moderate 29% in light of the large investment needs.

All segments within the forecast earnings ranges

In the segment Sustainable Generation Infrastructure, earnings in the past fiscal year amounted to around €2.6 billion, down approximately 43% year on year as expected. Adjusted EBITDA reached the lower end of the €2.6 billion to €3.1 billion guidance range.

In the segment Renewable Energies, adjusted EBITDA fell by 30% to around €1.2 billion. This mainly relates to earnings from pumped storage power plants. These have been assigned to the segment Renewable Energies since 2024 as they qualify as environmentally sustainable under the EU Taxonomy. The normalization of the exceptional price levels for electricity from pumped storage power plants was a major factor in the lower earnings at Renewable Energies.

In Thermal Generation and Trading, earnings declined by 51% to €1.4 billion. This was mainly due to lower volatility in gas trading and a fall in revenues from the marketing of generation volumes as a result of significantly reduced wholesale market prices.

The segment System Critical Infrastructure – comprising the electricity and gas transmission and distribution grids – generated adjusted EBITDA of around €2.2 billion. Earnings here are up 27% and thus at the upper end of the guidance range of €1.9 billion to €2.2 billion. The increase was mainly due to higher investment in grid expansion required for the transformation of the energy system, which led to higher revenues from grid usage despite a rise in personnel expenses.

Adjusted EBITDA in the segment Smart Infrastructure for Customers amounted to around €324 million in the past fiscal year. This marks an increase of 35%. Earnings here are therefore at the upper end of the forecast earnings range of €250 million to €350 million. The main reason for the earnings growth is the absence of the negative impact from the deconsolidation of bmp greengas in the previous year.

For the current fiscal year, EnBW expects adjusted EBITDA at Group level to be in a range of €4.8 billion to €5.3 billion.

Adjusted EBITDA in the segment Sustainable Generation Infrastructure is expected to be between €2.4 billion and €2.7 billion in 2025, placing earnings on the same level as the previous year. The Renewable Energies business is expected to contribute between €1.1 billion and €1.3 billion to adjusted EBITDA. This is based on the expectation that the He Dreiht offshore wind farm will be fully operational and connected to the grid by the end of the year. The segment Thermal Generation and Trading is expected to see a further decline in revenues from the marketing of power plant generation volumes due to price factors. In the segment System Critical Infrastructure, adjusted EBITDA is expected to be above the previous year at between €2.3 billion and €2.6 billion. This is mainly accounted for by grid revenues as a result of the high levels of investment. For the segment Smart Infrastructure for Customers, adjusted EBITDA is expected to be between €250 million and €350 million.

Regarding EnBW’s strategic direction in the years ahead, Georg Stamatelopoulos emphasized: “The transformation of the energy system will only succeed if it is dimensioned to match demand and implemented efficiently. We hope to see adjustments to energy policy here. Stable framework conditions and hence investment certainty, are also central to the ongoing transformation, for example for the construction of urgently needed new gas-fired power plants. The entire industry is currently waiting for clarity on the German Power Plant Security Act. We call on the new German government to deliver that clarity in the near future. Pragmatic solutions here are the key to success.”

As an integrated energy provider, EnBW plans to invest at least €40 billion in the transformation of the energy system by 2030. In view of the heavy investment needed for a future-ready energy infrastructure and to ensure security of supply, specifically in the state of Baden-Württemberg, the EnBW CEO went on to explain that the Company is currently exploring options to secure financing in the future. “We are also in discussions with our shareholders on the possibility of a capital increase of the order of around €3 billion. While the decision is still pending, the two main shareholders have now created the basic conditions for this to happen. That gives me cause for optimism,” said Stamatelopoulos.