E. On SE - ADR

Solid operating + earnings performance; guidance largely on track - Reported 9M 2026 adjusted EBITDA: EUR 7.1bn (broadly flat YoY), and adjusted net income: EUR 2.2bn, +4% YoY (in line with expectations). - Progress vs full-year midpoint: about ~75% of guided EBITDA and ~79% of guided adjusted net income achieved at group level → management says full-year 2026 guidance confirmed. - Segment highlights: Energy Networks stable; Energy Infrastructure Solutions +15% EBITDA YoY; Energy Retail in line with expectations but affected by deconsolidation effects (see next point).

Key “good” surprise/positive: regulatory timing improvement in Germany raises confidence for more investment - BNetzA decision to postpone German gas WACC determination to 2027 (from earlier schedule), citing changed capital market conditions (higher rates). - Management argues this should be positive for allowed regulatory returns, because it replaces a “low interest year” in the reference period with a “higher interest year.” - Also expects comparable postponement for power WACC to 2028 (under similar conditions), potentially improving power network returns. - Investment implication: E.ON says it can start to gradually increase the CapEx envelope as regulatory visibility improves, but final scaling depends on parameters (notably beta / cost of equity translation into allowed returns).

“Bad / headwind” accounting and phasing impacts; some earnings pressure from debt costs - Noncash effective E&D impact (accounting-driven energy procurement transaction treatment) temporarily affects economic net debt, with expected largely unwind in 2027. - Retail phasing/normalization: U.K. quarterly earnings reflect Warm Home Discount cost recognition that was previously only in Q4; management stresses it will unwind by year-end → neutral full-year. - Financing costs up: rising refinancing costs and higher absolute net debt increased financing expenses; management expects this interest effect to continue into Q4 2026 and beyond, though full-year net income guidance remains on track.