Centrica (CNA) H2 2024 earnings summary

Executive summary

• Achieved profit targets two years ahead of schedule, with EPS of 19p and adjusted EBITDA of £2.3bn for 2024.

• Returned £700m to shareholders and ramped up investment to nearly £600m, with a further £500m share buyback extension announced.

• Announced a 22% increase in 2025 dividend to 5.5p, nearly 40% higher over two years, and extended share buyback by £500m.

• Strong operational improvements and customer satisfaction underpin growth confidence.

• Pathway established to deliver £1.6bn run-rate EBITDA by end of 2028, with ~85% from current activities and projects.

Financial highlights

• Adjusted EBITDA: £2.3bn; adjusted EPS: 19p; free cash flow: £1bn; adjusted operating profit: £1.6bn.

• Net cash at year-end: £2.9bn; capital expenditure just under £600m.

• Group adjusted operating profit: £1.6bn, lower than 2023 due to normalized market conditions.

• Paid nearly £1bn in taxes and levies to governments in 2024.

• Cash returned to shareholders was £0.7bn, with a further £500m share buyback extension announced.

Outlook and guidance

• Pathway to £1.6bn group EBITDA by 2028, with 85% from existing businesses and projects.

• Retail and optimization expected to deliver around £1bn EBITDA; infrastructure to contribute £200m.

• Services and solutions targeted to reach £100–200m EBITDA in 2026.

• Intention to raise 2025 dividend per share by 22% to 5.5p; targeting £1.6bn end-2028 run-rate EBITDA.

• Investment programme of £4bn across 2024-28, with half already committed and focused on attractive returns.