RWE (RWE GR): Buy: Double-digit EPS growth to 2031e

Research evidence excerpt

RWE (RWE GR): Buy: Double-digit EPS growth to 2031e

Equities ● Multi-Utilities

9 July 2026

RWE rerated on improved growth outlook at lower risk

70 RWE share price evolution, in EUR/share

60 Transitioning

into a Restructuring

50 renewables and recovery

company 40 phase

Sector derating due to Rerating on flexible

20 supply chain issues, generation and

10 higher interest rates,etc improved renewables

outlook

Jul-16 Jul-17 Jul-18 Jul-19 Jul-20 Jul-21 Jul-22 Jul-23 Jul-24 Jul-25 Jul-26

Source: LSEG workspace, HSBC estimate

In its strategic business plan presented on 12 March 2026, RWE announced net cash

investment of cEUR35bn in 2026-31, aiming to add c25GW of capacity in the period, taking its

total generation capacity to c65GW by 2031. More specifically, the company focused on high-

growth markets such as the US and Europe for growth, with c70% of its total investment

planned for these regions.

The company plans to invest EUR17bn in the US power generation business with expected

capacity additions of 9GW. In European renewables, RWE targets 5GW of new capacity additions

from cEUR7bn of investment. Further, the company targets 6GW of capacity additions in its

flexible generation business with investment of EUR9bn and 5GW of capacity additions in its

offshore business with net investment of EUR2bn. RWE targets an attractive IRR of 8.5% and

above for new projects. As of Q1 2026, RWE has 40.5GW of operational capacity and another

10.4GW under construction, implying c51GW of capacity either in operation or under construction.

RWE targets c70% of its planned capex in …such as the US and Europe with

attractive growth markets… capacity additions of c14GW

Net Cash Investment 2026-31e Net capacity additions 2026-31e

European Wind &

Solar European Wind &

7 5 Solar