E.ON Q3 2024 Financial Results

E.ON's (ETR:EONGn) third-quarter 2024 financial results met market expectations, posting an adjusted EBITDA of €1.8 billion and an adjusted net income that exceeded forecasts by 2%.

Performance Highlights

• The Networks division delivered as expected, benefiting from a boost of approximately €700 million from German pension recoveries.
• However, the Energy Retail segment reported softer results, indicating minimal earnings contributions anticipated for the fourth quarter. This change may lead to less dramatic half-year earnings distribution compared to the previous year.

Guidance and Outlook

E.ON has reaffirmed its guidance for the full year, forecasting EBITDA between €8.8 billion and €9 billion, with 74-76% of this target achieved in the first nine months. The net income outlook is also on track, aiming for €2.8 to €3 billion, which is about 73%-79% fulfilled, though slightly below historical averages.

Morgan Stanley (NYSE:MS) indicates that while this guidance is achievable, it does not suggest any significant changes in market forecasts.

The company's long-term objectives for 2028 were reiterated, expecting an EBITDA exceeding €11 billion and net income reaching around €3.3 billion. E.ON plans to maintain capital expenditures of €42 billion from 2024 to 2028 and targets a 5% annual dividend growth.

As of the end of the third quarter, E.ON reported an economic net debt of €41 billion, aligning with forecasts. Year-to-date capital spending has increased by 20% from last year, representing approximately 65% of the company’s full-year capital allocation.