RWE's Vanguard Wind Tie-Up With KKR Closes as Broker Targets Climb on Stellar Nine-Month Beat

RWE has finalised the joint venture handing KKR a 50% stake in each of its British offshore wind projects Vanguard West and Vanguard East, capping a busy week that also saw two major brokers raise their price targets on the German utility's stock.

The two Norfolk developments carry a combined capacity of roughly 2.8 GW and a planned investment volume of about £12 billion, with non-recourse financing already secured for the schemes. The transaction closed on Wednesday.

That deal landed alongside RWE's third-quarter update, in which the Essen-based company reported adjusted EBITDA of €4.6 billion for the first nine months of 2026, up sharply from €3.4 billion a year earlier. Adjusted net income for the period reached €1.8 billion, translating into adjusted earnings per share of €2.52.

Guidance Points to the Top of the Range

Management reaffirmed its full-year outlook and said it expects results to land at the upper end of the confirmed bands. Adjusted EBITDA for 2026 is guided at €5.75 billion to €6.35 billion, while adjusted net income is forecast at €1.95 billion to €2.45 billion. The dividend target stands at €1.32 per share.

Investors welcomed the numbers, with the stock gaining 1.2% on Friday.

Analysts moved quickly. Barclays lifted its target to €73 from €72 on Thursday while keeping an "Overweight" rating, with analyst Peter Crampton describing the nine-month figures and the outlook as a wake-up call. LBBW followed the same day, raising its target to €66.60 from €63.20 and reiterating a "Buy" call in response to the interim results.

Berlin Circles Urenco Stake

Away from the wind business, Reuters reported on Friday, citing insiders, that the German federal government wants to acquire the one-third stake in uranium enrichment group Urenco held jointly by RWE and E.ON. Talks are said to be ongoing and a deal is not expected before mid-2027. Both the government and the companies declined to comment, according to Reuters, and the takeover plans remain unconfirmed.