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RWE (Baa2): FY Results

UTILITIES

Neutral for spreads. Capex needs are well known.

  • 25% consensus miss on revenue is essentially noise from the supply & trading division.
  • Adj. EBITDA in line with consensus.
  • FCF worse than expected at €-4.6bn vs €-2bn YoY, driven by both OCF miss and higher than expected capex.
  • Leverage stands at 0.9x. With ongoing capex needs, management and the street expect this to increase. Upper threshold is 3x, 3.5x after 2025.
  • EBITDA guidance is in line with consensus.
  • Call 10.00 CET https://live.rwe.com/event/H76aKs02E7?ln=en

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