E.ON Profit Rises; Utility Presses Germany to Lift Grid Returns

E.ON SE reported a solid first-half performance and reiterated its full-year guidance while urging Germany’s regulator to raise allowed returns on power-grid assets. Adjusted EBIT climbed 14% to €3.82 billion on sales of €41.55 billion, helped by higher network earnings and energy-retail margins. Reuters data showed adjusted core profit, the company’s preferred EBITDA metric, rising 13% to €5.5 billion. Europe’s largest grid operator kept its 2025 outlook for adjusted EBITDA at €9.6 billion to €9.8 billion and adjusted net income at €2.85 billion to €3.05 billion. Chief Executive Leonhard Birnbaum confirmed plans to invest €43 billion in networks and customer solutions between 2024 and 2028, but said the programme hinges on “better regulation” that would allow higher equity returns and attract outside capital. Germany currently grants pre-tax returns of 7% on new grid infrastructure and 5% on existing assets, levels E.ON says lag other European markets that offer up to 9%. Birnbaum warned that unless the Federal Network Agency increases the caps, Europe’s largest economy risks falling behind in the build-out needed for the energy transition and security of supply.