E.ON: Equity story still held back – remain at Neutral

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E.ON: Equity story still held back – remain at Neutral

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E.ON

Equity story still held back – remain at

Neutral

Reiterate Rating: NEUTRAL | PO: 19.50 EUR | Price: 18.64 EUR

Earnings on track, but no progress on regulation 13 May 2026

This morning E.On reported Q1’26 results slightly ahead of Vara cons mainly driven by Equity

phasing effects and fully reiterated its FY26 & FY30 guidance. The subsequent call gave

more colour on 1) OVO: E.On expects EPS in the initial years to be negatively impacted,

Key Changeswith the contribution then turning positive by 2030E adding ~2% to the group result,

and 2) German regulation: quantifying the opex adjustment factor will only be possible (EUR) Previous Current

by 2028. Visibility on regulation remains low. Given limited incremental positives to the Price Obj. 19.30 19.50

equity story, we reiterate Neutral with a new €19.5 PO (from €19.3, reflecting OVO deal). 2027E EPS 1.24 1.23

2028E EPS 1.31 1.28

Conference call: OVO to be EPS neutral during 2026-30E

1) OVO: neutral on EPS over 2026-30, with 2028E likely the most negatively impact. By Julius Nickelsen, CFA >>

Research Analyst

2030E E.On expects a “ high double-digit mn” positive EPS impact and “high triple-digit MLI (UK)

mn” increase in balance sheet headroom, 2) German regulation: opex adjustment factor +44 20 7995 6027 julius.nickelsen@bofa.com

a positive but can only be quantified by 2028E, 3) Does not see Q1 tracking above the

Peter Bisztyga >>

guidance: flags that phasing in Retail, and lower Minorities should reverse over the FY Research Analyst

and that financial costs should ramp up, 4) no plans to do a CMD this year. MLI (UK) +44 20 7995 0535

peter.bisztyga@bofa.com

Q1’26 results: underlying performance in line with guide Marcin Wojtal >>