Share Buyback Reflects Savvy Capital Allocation From RWE

Under a large asset swap with E.On completed in 2020, RWE exchanged its retail and networks businesses for a 15% stake in E.On and its renewables assets. With the acquisition of Consolidated Edison's clean-energy business in 2023, RWE became the fourth-largest renewables firm in the US with a solid solar footprint. About 75% of RWE’s EBITDA will come from wind and solar from 2028 onward. This means a derisked profile with more earnings visibility. However, with growing risks for renewables following Donald Trump's election and mounting investors' skepticism over the space, RWE announced a EUR 1.5 billion share buyback program in November 2024 and slashed its 2025-30 investments by 25% in March 2025. A key lever to the latter is the farm down of offshore wind farms under construction. RWE's management emphasizes it could to do more share buybacks in 2026 when it has more financial flexibility. Elliott Management, which amassed a 5% stake in RWE in April 2025, called for additional share buybacks earlier than 2026.