EON SE is going to be expanding its investment program to €48 billion to boost Europe grid capacity all through the end of the decade as the grid bottlenecks keep surging throughout Europe and apparently has indicated that it may as well have space to spend more.
Notably, the German utility has gone ahead and topped up its spending plans when it comes to the year range of 2026 to 2030, with almost €40 billion of the new amount that has been dedicated for its business related to energy networks. It apparently also has balance sheet capacity worth €5 billion to €10 billion for more growth opportunities, with investments starting to show up as early as 2027, said Nadia Jakobi, the Chief Financial Officer, at a press conference.
One cannot deny the fact that network constraint is indeed cropping up as a key friction point when it comes to the push by Europe so as to decarbonize as well as electrify its economy. The move made by EON actually goes on to respond to growth in wind and solar projects along with new electricity-hungry consumers such as the likes of data centers as well as electrified transport, with developers throughout the region experiencing delays in order to secure access to the grid.
EON, in the past, had planned to invest €43 billion between the year range – 2024 and 2028.
Says Leonhard Birnbaum, the Chief Executive Officer at EON, in an interview with Lizzy Burden and Anna Edwards from Bloomberg Television, “There is an obvious need for additional infrastructure. It’s actually the bottleneck for a further continuation of the energy transition.”
The shares of EON have risen as much as 3.1% to the highest level ever since 2011 and hence have reversed the declines of the past.
While the expanded spending plan from EON does signal towards boost Europe grid capacity which indeed has to see the growth phase in order to match up with the policy ambitions, permitting delays, regulations as well as supply chain shortages have weighed in on the expansion.
As per an earnings statement on February 25, 2026, it said that its new spending plan explicitly assumes the right regulatory conditions when it comes to its German network business. Apparently, the German grid regulator periodically gauges what returns the utilities are permitted to collect, and the fact is that the operators have for long argued that the returns are very low in order to finance those expensive upgrades.
As per EON in its earnings presentation, further growth opportunities could also emerge once the parameters pertaining to the next regulatory period get absorbed well.
According to Birnbaum, “We are actually quite confident that we will get a regulation that allows such an investment program over an extended period of time to really take place.”
Interestingly, EON also has gone ahead and reported adjusted earnings before interest and taxes, in addition to depreciation and amortization, of around €9.8 billion for 2025, which has come in at the upper side of its anticipated range and just above the estimates made by analysts, as per the data compiled by Bloomberg.
It also predicts earnings for the present year in the range of €9.4 billion to €9.6 billion and anticipates them to grow to almost €13 billion by the end of the decade.
