E.ON Q3 results meet expectations, guidance maintained

Investing.com -- E.ON's (ETR:EONGn ) third-quarter 2024 financial results met market expectations, with an adjusted EBITDA of €1.8 billion and an adjusted net income that slightly exceeded forecasts by 2%.

The Networks division performed as anticipated, incorporating an estimated €700 million boost from German pension recoveries. 

However, the Energy Retail segment showed softer results, suggesting minimal earnings contributions anticipated for the fourth quarter—a shift that could make the half-year distribution of earnings less dramatic than the previous year.

E.ON has maintained its guidance for the full year, forecasting EBITDA in the range of €8.8 to €9 billion, with 74–76% of this target already covered by the first nine months. 

The company's net income outlook remains on course, with a target of €2.8 to €3 billion, approximately 73%–79% fulfilled, albeit slightly below E.ON’s historical averages. 

Morgan Stanley (NYSE:MS ) points out that while this guidance is achievable, the performance does not imply any substantial revision in market forecasts.

The company’s longer-term 2028 objectives were also reiterated, with E.ON projecting an EBITDA exceeding €11 billion and net income reaching approximately €3.3 billion. 

Additionally, the planned capital expenditure of €42 billion over 2024–2028 remains intact, alongside the annual dividend growth target of 5%.

On the balance sheet, E.ON closed the third quarter with economic net debt of €41 billion, consistent with forecasts. Year-to-date capital spending is up by 20% from last year and represents about 65% of the company's full-year capital allocation.

Source: Investing.com