E. On SE - ADR

Financial Performance: E.ON reported an adjusted EBITDA of €9 billion for 2024, achieving the upper end of the guidance range, with an 8% year-over-year growth in underlying adjusted EBITDA. Adjusted net income increased to €2.9 billion, indicating strong operational performance despite challenging market conditions.

CapEx Growth and Investment: Total capital expenditures (CapEx) reached a record high of €7.5 billion, up 16% year-over-year, driven mainly by investments in energy networks. E.ON expects to maintain a robust CapEx plan of €43 billion through 2028, emphasizing significant growth in regulated asset base (RAB) effective investments across all regions.

Regulatory Framework and Future CapEx: The upcoming regulatory period starting 2029 is critical, with expectations for clearer parameters by the end of 2025. E.ON indicates that they will consider raising CapEx plans once regulatory returns become attractive, with a focus on maintaining a return on capital employed (ROCE) spread of 150-200 bps over WACC as a threshold.