RWE Shares Surge to Highest Level in a Decade

RWE shares surge to €59.18, a 10-year peak, fueled by a major offshore wind project approval, a €35bn investment plan, and a shareholder-friendly dividend policy.

Shares in German energy giant RWE reached a milestone on April 2, climbing to €59.18—a price not seen in over ten years. This peak caps a significant rally, with the stock advancing approximately 26% since the start of the year. The upward momentum is driven by tangible project developments, rising power prices, and a shareholder-friendly dividend strategy.

Strategic Investments and Profit Targets

The company has outlined an ambitious €35 billion investment plan through 2030, aimed at expanding its generation capacity by 25 gigawatts. Central to this growth is a target to more than double its earnings per share, from €2.48 to €4.40, within the same timeframe.

Major Offshore Wind Project Gains Crucial Approval

A key catalyst for the recent optimism was a regulatory green light received in late March. Germany's Federal Maritime and Hydrographic Agency granted planning approval for the "Nordseecluster B" offshore wind development. This authorization unlocks the second phase of a total 1.6-gigawatt project.

Construction of the initial 660-megawatt phase, featuring 44 turbines, is already underway, with installation set to begin this summer and commissioning scheduled for early 2027. The newly approved Cluster B adds a further 900 megawatts of capacity. Foundation installation is planned for 2025, with turbine installation to follow in 2028. RWE has already secured a power purchase agreement for 110 megawatts of this output with technology conglomerate Amazon.

Dividend Policy and Divergent Analyst Views

RWE's commitment to returning capital to shareholders remains clear. At the Annual General Meeting in Essen on April 30, shareholders will vote on a proposed dividend of €1.20 per share for the 2025 fiscal year, with payment scheduled for May 6. The firm has a long-term policy of increasing its annual dividend by 10%. Plans for 2026 already indicate a payout of €1.32 per share.

Market experts, however, offer mixed perspectives on the stock's future trajectory. JPMorgan has raised its price target to €65 and maintains RWE on its "Analyst Focus List," citing structurally higher gas and electricity prices due to the conflict involving Iran as a supportive factor. In contrast, Bernstein Research maintains a "Market-Perform" rating with a €57 price target, slightly below the current trading level.

Upcoming Financial Report to Provide Fresh Momentum Check

Investors will gain new insight into the company's performance when RWE releases its first-quarter 2026 report on May 13. For the full 2026 year, management expects adjusted EBITDA to land between €5.2 billion and €5.8 billion. This follows a strong 2025, where adjusted EBITDA reached €5.1 billion, exceeding the company's own forecasts thanks to robust performance in energy trading and offshore wind. The Q1 figures will reveal whether this positive momentum has carried into the new year.