European Utilities: Model updates post 1Q26 results

Research evidence excerpt

European Utilities: Model updates post 1Q26 results

Equity Research

12 June 2026

European Utilities

Model updates post 1Q26 results

Post 1Q26 results, we update our projections for Engie, EVN,

Grenergy, Fortum, Naturgy and RWE. Our ratings stay

unchanged, with increases in our PTs for Naturgy (to €30.0 PT European Utilities & Clean Energy POSITIVE

Unchangedvs. €28.0 before) and Grenergy (to €120 PT vs. €103 before)

and a small decline in our Fortum PT (to €21.0 vs. €21.5 European Utilities & Clean Energy

Peter Crampton

before). +44 (0)20 3555 0125

peter.crampton2@barclays.com

Barclays, UK

Our model revisions lead to PT upgrades for Naturgy and Grenergy and a PT decline for

Fortum. Reflecting 1Q26 results, updated guidance and current forward commodity prices, we Dominic Nash, PhD

raise our 2026 adj. EPS estimates for EVN (~3%) and RWE (~5%), while trimming our forecasts for +44 (0)20 3134 2364

dominic.nash@barclays.comFortum (~4% cut). These updated assumptions drive PT increases to €30.0 (from €28.0) for

Naturgy (on a higher valuation of its core Spanish assets) and to €120 (from €103) for Grenergy

(reflecting a higher valuation of its core Chilean assets). For Fortum we have lowered our PT to Laura Marconi

€21.0 from €21.5 (predominantly because of lower assumed Nordic nuclear load factors). Our +44 (0)20 3555 0762

laura.marconi@barclays.comratings are unchanged.

We remain Positive on European Utilities as structural drivers and valuations remain

positive, in our view: As discussed in our sector report: At an inflection point: demand, data

centres, and re-ratings (29 January 2026), we still see significant upside potential despite the

substantial sector outperformance vs. the broader market over the past year (SX6P +23% vs.

European market SXXP +13%).