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E.ON is set to boost its investments to USD 57 billion over the next five years to expand and modernise energy grids across Europe. This plan will help the company manage increasing electricity demand, particularly from renewables, storage solutions, and data centres supporting AI projects. The investment follows a previous 43 billion euro programme and reflects E.ON's strategy to strengthen regulated networks and long-term profits. Shares have risen over 16% this year, and the company has recommended a 4% increase in its 2025 dividend, though a cautious profit outlook led to slight pre-market losses.
E.ON, the largest operator of energy networks in Europe, announced that it will increase its investment to 48 billion euros (USD 57 billion) over the next five years. The plan, covering 2026 to 2030, aims to expand and modernise energy grids to meet the rising demand from renewables, storage solutions, and the growing number of data centres across the continent. Advertisement
The company highlighted that the energy system is becoming more decentralized and complex, and it is working to ensure that the grid remains secure, resilient, and affordable for customers, according to CEO Leonhard Birnbaum. This new investment plan follows a 43 billion euro programme that ran from 2024 to 2028, reflecting E.ON's continued focus on strengthening its regulated networks, increasing its asset base, and supporting long-term profits.
Utility stocks, including E.ON, have benefited from an AI-driven surge in the market, with expectations that the growing need for data centres will further increase electricity demand and infrastructure requirements. Year-to-date, E.ON shares have risen more than 16%, outperforming both the broader European sector index and overall European stocks.
E.ON also proposed a 4% increase in its 2025 dividend to 0.57 euros per share, consistent with average analyst expectations. However, shares were slightly down in pre-market trading by 0.6%, as a local trader cited a cautious outlook. E.ON forecasts core profits for 2026 to range between 9.4 billion and 9.6 billion euros, slightly below last year's 9.8 billion euros. Analysts polled by the company expect core profits of 9.5 billion euros for the year.
Source Reuters
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