Education
About Us
Working with TipRanks
Follow Us
EON SE (EONGY)
OTHER OTC:EONGY
Top Page
EON SE
(OTC:EONGY)
Select Model
Select Model
Rating:54Neutral
Price Target:
$24.00
▲(33.41% Upside)
Action:ReiteratedDate:02/27/26
The score is held back most by weaker recent profitability, elevated leverage, and persistently negative free cash flow. Support comes from a strong technical uptrend and a generally constructive earnings outlook, though near-term regulatory and refinancing uncertainties and overbought technical signals limit upside.
Positive Factors
Network-focused multi-year CapEx plan
A materially larger, network-heavy CapEx envelope creates durable, regulated asset growth (RAB) and predictable cash flows. Sustained investment in grids should drive stable network returns and underlying EBITDA growth over the next 5+ years, anchoring long-term earnings.
Consistent operational delivery (EBITDA)
Beating guidance and delivering near-term targets demonstrates operational strength and execution discipline. Reliable EBITDA performance supports credibility of management's 2030 targets and underpins investment plans and long-term cash generation assumptions.
Positive operating cash flow and balance-sheet capacity
Strong operating cash flow and retained borrowing capacity provide financing optionality for accelerated network investment and dividend policy. Positive OCF and available capacity mitigate refinancing timing risk and support execution of multi-year CapEx.
Negative Factors
Negative free cash flow and elevated leverage
Persistent negative free cash flow paired with a debt-heavy structure reduces financial flexibility. Over time this constrains the company's ability to self-fund growth or absorb shocks, increasing reliance on external financing and amplifying refinancing and interest-rate risk.
German regulatory uncertainty (RP5 / OpEx)
Unresolved regulatory parameters for network returns and OpEx treatment create long-term earnings visibility gaps. Allowed returns and benchmarking materially affect network economics; regulatory outcomes could reduce returns or delay investment recoupment, altering mid-term cash flows.
Higher refinancing costs and recent one‑offs
Rising financing costs combined with sizable one-off charges compress reported and underlying earnings and reduce free cash flow. Over several years, higher interest expense raises break-even requirements for investments and limits surplus cash available for growth or dividends.
EON SE (EONGY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$56.78B
Dividend Yield3.27%
Average Volume (3M)6.95K
Price to Earnings (P/E)28.9
Beta (1Y)-0.13
Revenue Growth1.94%
EPS Growth65.73%
CountryUS
Employees69,668
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.33
Shares Outstanding2,641,318,800
10 Day Avg. Volume0
30 Day Avg. Volume6,953
Financial Highlights & Ratios
PEG Ratio-0.40
Price to Book (P/B)2.19
Price to Sales (P/S)0.56
P/FCF Ratio-46.80
Enterprise Value/Market Cap1.53
Enterprise Value/Revenue1.11
Enterprise Value/Gross Profit4.72
Enterprise Value/Ebitda9.87
Forecast
1Y Price Target
$21.40Price Target Upside18.95% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)1.26
Revenue Forecast (FY)$96.83B
EON SE Business Overview & Revenue Model
Company DescriptionEON SE (EONGY) is a leading German utility company focused on energy generation and distribution, specializing in renewable energy sources including wind, solar, and hydroelectric power. The company operates across various segments such as power generation, energy trading, and infrastructure management. EON SE aims to lead the transition to sustainable energy solutions, providing innovative products and services that support the decarbonization of the energy sector.
How the Company Makes MoneyEON SE generates revenue primarily through the sale of electricity and gas to residential, commercial, and industrial customers. The company's revenue model includes several key streams: the generation of electricity from its renewable energy assets, which are increasingly becoming a significant part of its portfolio, as well as traditional fossil fuel-based generation. Additionally, EON earns income from energy trading activities, balancing supply and demand in the energy market. The company's infrastructure services, including the management and maintenance of energy networks, also contribute to its revenue. Strategic partnerships with other energy companies and investments in new technologies further enhance EON's earnings, allowing it to capitalize on emerging market trends in energy efficiency and sustainability.
EON SE Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call highlighted strong financial delivery for 2025 (adjusted EBITDA EUR 9.8bn, adjusted net income EUR 3.0bn), accelerated investments (EUR 8.5bn, +13% YoY), clear operational achievements (2 million connected renewables, digital efficiency gains) and an upgraded 5‑year CapEx envelope to EUR 48bn with a constructive 2030 growth outlook (>6% CAGR). However, the company faces meaningful near-term headwinds from unresolved regulatory details in Germany (RP5/OpEx/benchmarking), elevated refinancing costs, one-off charges (~EUR 300m) and regional grid capacity constraints. Overall, operational momentum, balance-sheet strength and clear growth optionality outweigh the regulatory and refinancing uncertainties, but the pace of future CapEx acceleration remains contingent on regulatory clarity.Q4-2025 Updates
Positive Updates
Ambitious 2030 Earnings Outlook
Outlook to 2030: >6% average annual earnings growth; adjusted EBITDA targeted around EUR 13 billion by 2030 and adjusted net income ~EUR 3.8 billion.
Operational Milestones in Grid Integration
Around 110 GW of renewables directly connected to E.ON grids (Aug 2025); connected the 2 millionth renewable energy source to German grid by Jan 2026 (1st million in Oct 2023 — second million in ~2.5 years), showing acceleration in connections.
Digital & Operational Efficiency Gains
New field assistant app delivered up to 45% less effort for circuit planning and up to 40% less documentation; UK digital sales rose 30% in Q4 2025 YoY; standardization reduced technical specs by ~20% in less-standardized markets.
Segment Growth Highlights
Energy Infrastructure Solutions grew ~5% YoY to EUR 588 million; EIS expected to deliver ~12% CAGR to 2030 (targeting ~EUR 1.1 billion EBITDA); Energy Retail expected to reach ~EUR 2.1 billion EBITDA by 2030 and to generate ~EUR 7 billion cash contribution by 2030.
Solid Balance Sheet and Cash Generation
Economic net debt decreased by EUR 200 million QoQ to ~EUR 43.2 billion; strong operating cash flow of EUR 3.6 billion; 100% cash conversion and debt factor of 4.4 (below guidance ceiling up to 5x), retaining EUR 5–10 billion balance sheet capacity.
Strong Full-Year Financial Results
Adjusted EBITDA of EUR 9.8 billion (upper end of guidance) and adjusted net income of EUR 3.0 billion for FY2025; adjusted EBITDA rose by ~EUR 0.8 billion year-over-year.
Record and Growing Investments
Group investments increased to EUR 8.5 billion in 2025, up 13% year-over-year; 5-year CapEx envelope raised from EUR 43 billion to EUR 48 billion for 2026–2030 (≈+11.6%).
Energy Networks Driving Growth
Energy Networks investments doubled vs 2021; annual network investments increased to ~EUR 7 billion in 2025; guidance implies ~10% power RAB CAGR in Germany and ~6% p.a. underlying EBITDA growth in Networks to 2030.
Negative Updates
Regulatory Uncertainty in Germany (RP5 / OpEx)
Key RP5 parameters and OpEx adjustment factor remain unresolved; lack of clarity on regulatory parameters (allowed return, benchmarking, OpEx treatment) restricts ability to further raise CapEx and quantify upside; timing remains path-dependent.
One-Off Charges and Underlying Net Income Impact
Total one-off effects of ~EUR 300 million (including a negative high double-digit million euro effect from efficiency programs) reduced reported underlying EBITDA to ~EUR 9.5 billion and adjusted net income on an underlying basis to EUR 2.84 billion.
Rising Interest and Refinancing Costs
Interest costs increased due to higher net debt and refinancing of maturing bonds; examples of new bond issuance show higher market rates (average issuance ~3.7% observed), implying elevated future refinancing costs for maturing low-rate debt.
Retail Segment Near-Term Headwinds
Energy Retail landed at the midpoint of EUR 1.8 billion in 2025; structural headwinds include customers switching from SVT to fixed-term tariffs, rolling-off B2B contracts and a structural deconsolidation of one participation impacting 2026 EBITDA; guidance sees broadly stable retail near-term before later growth.
Grid Connection Bottlenecks and Speculation
Extremely high connection requests (e.g., cited 500 GW batteries, 70 GW data center requests) causing capacity constraints in some regions (notably eastern Germany); current 'first come, first serve' regime fuels speculative connection requests and could hamper efficient connection rollout without reform.
Benchmarking and Redispatch Allocation Concerns
Regulatory benchmarking proposals remain challenging; redispatch costs are treated as influenceable in benchmarking which disproportionately penalizes E.ON (high share of distributed renewables), reducing regulatory fairness and potentially lowering allowed returns.
Remaining Visibility Gaps on 2030 Assumptions
Management declined to disclose granular assumptions (e.g., allowed returns baked into 2030 German network EBITDA), leaving investors unable to fully reconcile 2030 network EBITDA drivers and regulatory parameter assumptions.
Operational & Supply-Chain Risks
Although standardization and supplier agreements mitigate risk, management acknowledged possible local bottlenecks in supply chain or permitting and the ongoing challenge of delivering large-scale IT transformations on time and on budget.
Company Guidance
E.ON’s guidance: for 2026 the group targets adjusted EBITDA of EUR 9.4–9.6bn and adjusted net income of EUR 2.7–2.9bn, while looking to 2030 it expects >6% p.a. underlying earnings growth to around EUR 13bn adjusted EBITDA and ~EUR 3.8bn adjusted net income; the 5‑year CapEx envelope for 2026–2030 was raised from EUR 43bn to EUR 48bn (≈EUR 10bn/yr from 2027), with ~EUR 40bn earmarked for Energy Networks and ~EUR 5bn for Energy Infrastructure Solutions, and the group retains balance‑sheet capacity of EUR 5–10bn plus optionality to invest an additional EUR 1.5–2bn/yr pending RP5; 2025 actuals included adjusted EBITDA EUR 9.8bn and adjusted net income EUR 3.0bn (upper end of guidance), group CapEx EUR 8.5bn (+13% YoY) with network investments ~EUR 7bn, underlying EBITDA ~EUR 9.5bn after ~EUR 300m one‑offs, economic net debt ~EUR 43.2bn (debt factor 4.4), operating cash flow EUR 3.6bn, 100% cash conversion, and a dividend growth commitment of up to 5% p.a.EON SE Financial Statement Overview
Summary
Financials show clear pressure: profitability weakened in 2025 (revenue down and net margin falling to ~2.2% from ~5.7%), leverage is elevated with debt-to-equity ~2.14, and free cash flow remains negative (not supporting reported profits). Positive operating cash flow helps, but overall flexibility and earnings quality look constrained.Income Statement
Profitability has weakened meaningfully in the most recent year: 2025 revenue declined (-7.07%) and net profit margin fell to ~2.2% versus ~5.7% in 2024, with lower gross and operating margins as well. Results over the period show sizable volatility (including earlier years with negative operating profit), which reduces earnings quality and visibility. A positive is that the company remains profitable on a net basis in 2025, but the trajectory from 2024 to 2025 is clearly negative.46
Neutral
Balance Sheet
Leverage is elevated and persistent for a utility: debt-to-equity is ~2.14 in 2025 (similar to ~2.19 in 2024), indicating a debt-heavy capital structure. Equity has grown versus earlier years, which is constructive, but total debt has also risen, keeping balance-sheet risk moderate-to-high. Overall, the balance sheet looks serviceable for the industry but leaves less flexibility if earnings remain under pressure.44
Neutral
Cash Flow
Cash generation is a key concern: operating cash flow is positive in 2025 (~6.7B), but free cash flow is negative (~-0.9B) and has been negative in most years shown, indicating heavy investment needs and/or pressured cash conversion. Free cash flow also does not support reported profits in 2025 (free cash flow is negative while net income is positive). The main offset is that operating cash flow improved versus 2024, but the consistency and durability of free cash flow remain weak.38
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 75.60B | 80.12B | 95.02B | 115.66B | 77.36B |
| Gross Profit | 8.75B | 22.64B | 30.76B | 8.16B | 45.00M |
| EBITDA | 9.15B | 13.83B | 6.00B | 7.00B | 11.09B |
| Net Income | 1.67B | 4.53B | 517.00M | 1.83B | 4.69B |
Balance Sheet | |||||
| Total Assets | 116.36B | 111.36B | 113.51B | 134.01B | 119.76B |
| Cash, Cash Equivalents and Short-Term Investments | 4.35B | 7.02B | 6.96B | 8.92B | 5.23B |
| Total Debt | 41.14B | 39.06B | 35.44B | 34.15B | 34.66B |
| Total Liabilities | 89.77B | 87.19B | 93.54B | 112.14B | 101.87B |
| Stockholders Equity | 19.25B | 17.84B | 14.11B | 15.92B | 12.05B |
Cash Flow | |||||
| Free Cash Flow | -900.02M | -1.30B | -356.00M | 5.47B | -418.00M |
| Operating Cash Flow | 6.73B | 5.67B | 5.65B | 10.04B | 4.07B |
| Investing Cash Flow | -6.74B | -6.63B | -5.59B | -3.15B | -5.40B |
| Financing Cash Flow | -2.19B | 1.11B | -1.84B | -3.15B | 2.26B |
EON SE Technical Analysis
Neutral
17.99
Price Trends
20.56
Positive
19.44
Positive
18.81
Positive
Market Momentum
0.58
Positive
49.98
Neutral
51.34
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EONGY, the sentiment is Neutral. The current price of 17.99 is below the 20-day moving average (MA) of 21.87, below the 50-day MA of 20.56, and below the 200-day MA of 18.81, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 49.98 is Neutral, neither overbought nor oversold. The STOCH value of 51.34 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EONGY.
EON SE Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $6.90B | 8.86 | 13.35% | 12.98% | -0.38% | -53.94% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | $62.30B | 34.72 | 5.85% | 2.91% | 9.07% | -28.58% | |
59 Neutral | $18.16B | 40.28 | 7.99% | 4.92% | 8.14% | ― | |
54 Neutral | $56.78B | 28.86 | 16.59% | 3.27% | 1.94% | 65.73% | |
54 Neutral | $10.10B | 8.63 | 23.02% | 5.06% | -1.55% | 12.83% |
* Utilities Sector Average
EONGY
EON SE
21.61
8.83
69.10%
BIP
Brookfield Infrastructure
39.31
10.58
36.81%
CIG
Companhia Energetica Minas Gerais
2.18
0.50
29.68%
SRE
Sempra Energy
95.36
25.74
36.97%
AES
AES
14.18
3.81
36.78%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.