EON Stock: Record Investments Drive Ambitious Growth Plans

Germany's largest energy company EON has concluded a successful 2024 with adjusted EBITDA reaching €9.05 billion, landing at the upper end of its forecast and surpassing analyst expectations. Despite a slight year-over-year decrease attributed to temporary effects, the company demonstrated robust underlying performance with a substantial €600 million increase in core EBITDA. A standout achievement was the unprecedented €7.5 billion investment, primarily directed toward grid infrastructure expansion. Shareholders will benefit from an increased dividend of €0.55 per share, reflecting the company's strong financial position. Looking ahead to 2025, EON plans to further boost investments to €8.6 billion and projects adjusted EBITDA between €9.6 and €9.8 billion, with adjusted net income targeted at €2.85 to €3.05 billion.

Market Response and Analyst Outlook

The market has responded positively to EON's performance, with shares trading at €12.13, marking a 16% recovery from January's low of €10.44. Analysts maintain an optimistic stance, setting an average price target of €14.99 and anticipating a dividend increase to €0.616 per share for the current year. The company's medium-term outlook appears particularly promising, with EON raising its 2028 adjusted EBITDA target to exceed €11.3 billion, up from the previous €11 billion forecast.