German utility giant E.ON reported a 2% increase in adjusted group EBITDA for the first quarter, as the company benefited from stronger industrial customer demand in Germany and continued investment in Europe’s energy infrastructure.
Adjusted group EBITDA rose to €3.3 billion in the January-to-March period from €3.2 billion a year earlier, while adjusted net income climbed 7% to €1.34 billion.
The company said all business divisions performed in line with expectations, allowing management to reaffirm full-year guidance for adjusted EBITDA of €9.4 billion to €9.6 billion and adjusted net income of €2.7 billion to €2.9 billion.
Shares in Frankfurt-listed E.ON rose in early trading following the results, with analysts also pointing to higher retail energy prices at the start of the year as a contributing factor.
E.ON’s Energy Infrastructure Solutions division delivered one of the strongest performances in the quarter, with EBITDA rising 16% to around €240 million. The company attributed the increase partly to continued expansion of its industrial customer business in Germany, alongside delayed passthrough effects from higher procurement costs in Scandinavia.
The Energy Retail segment also posted a modest increase in earnings, helped by temporary pricing effects and customer management improvements in Germany. However, the company noted weaker performance in the UK due to the expiration of older industrial and commercial contracts.
E.ON invested €1.4 billion during the quarter, slightly below the previous year’s level, as severe cold weather in Germany delayed some grid infrastructure work. Most spending was directed toward expanding, modernizing, and digitalizing electricity networks as Europe accelerates electrification and renewable energy integration.
The company said investments in its Energy Networks business totaled €1.1 billion, focused on new grid connections, modernization projects, and digital upgrades designed to improve efficiency and grid stability.
Chief Financial Officer Nadia Jakobi said E.ON’s investment strategy was positioning the company to support Europe’s energy transition despite geopolitical and economic uncertainty.
“We’re building the infrastructure that Europe’s increasingly electrified energy system needs in economically and geopolitically challenging times,” Jakobi said.
The earnings update comes days after E.ON unveiled plans to acquire British energy retailer Ovo Energy, a move that would further strengthen its retail footprint in the UK market as utilities across Europe consolidate customer-facing operations while scaling grid investments tied to decarbonization efforts.
E.ON also highlighted its growing role in renewable integration, noting that it recently connected the two-millionth renewable energy installation to its German distribution grids.
By Charles Kennedy for Oilprice.com
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