RWE's Strategic Pivot Powers Shares Toward Record Territory

RWE shares surge as the energy giant commissions its Thor offshore wind farm and launches a €17bn US expansion to power AI data centers, backed by a €1.5bn buyback.

RWE AG shares are trading within striking distance of their 52-week high, closing at EUR 59.04 on Friday, as the German energy giant delivers on a dual strategy of portfolio optimization and aggressive growth in key markets. The company is simultaneously commissioning landmark renewable projects and executing a multi-billion euro push to become a primary power supplier to the U.S. artificial intelligence industry.

A major milestone was reached this week in the Danish North Sea, where the first turbines at the 1.1-gigawatt Thor offshore wind park began feeding electricity into the grid. RWE, which holds a 51% stake in the project, is employing innovative technology, including CO2-reduced steel towers that cut emissions by over 60% and recyclable rotor blades. The full park is scheduled for completion by 2027.

Concurrently, the company is sharpening its geographic focus. It has finalized the sale of its entire Swedish wind business, comprising 124 megawatts of operating assets and a 1.8-gigawatt development pipeline, to investor Aneo. The capital freed from this divestment is being redirected into RWE’s core investment program.

That program is colossal, totaling EUR 35 billion in net investments. Nearly half of this sum, approximately EUR 17 billion, is earmarked for expansion in the United States through 2031. The plan involves building 15 new "energy campus" facilities in states like Arizona and Texas, which will combine gas-fired power with solar and storage technology. This infrastructure is designed to meet the massive baseload demand from new AI data centers, aiming to boost RWE’s U.S. generation capacity from 13 gigawatts today to about 22 gigawatts.

Financially, the company is providing substantial support to its equity. A share buyback program of up to EUR 1.5 billion is underway, with nearly 290,000 shares repurchased in the first week of April alone for roughly EUR 16.7 million. Operationally, management has secured pricing for about 80% of its expected 2026 power output. This underpins its current-year guidance for adjusted EBITDA between EUR 5.2 and 5.8 billion, with a target to increase this figure to as much as EUR 6.8 billion by 2027.

Analysts remain bullish on the stock’s trajectory. JPMorgan and Deutsche Bank analysts have set price targets of EUR 65 and EUR 63, respectively, suggesting further upside from current levels. The shares have already surged more than 82% over the past twelve months.

Investors now face a busy calendar of corporate events. The virtual Annual General Meeting is set for April 30, 2026, where shareholders will vote on a proposed dividend of EUR 1.20 per share. The ex-dividend date is May 4, with payment following on May 6. A week later, on May 13, the interim report for the first quarter will offer a detailed look at the performance of RWE’s streamlined portfolio. Strong execution could pave the way for a planned dividend increase to EUR 1.32 for the 2026 financial year.

Risks to the ambitious U.S. expansion include regulatory uncertainty under the current administration and volatile natural gas prices. Nevertheless, the company’s focused capital allocation—divesting non-core assets while pouring resources into high-growth, margin-rich markets—is creating powerful momentum for the utility’s stock.