Centrica (CNA) H2 2025 earnings summary

Executive summary

• Achieved significant progress in 2025, focusing on building a stronger, higher-quality business with disciplined capital allocation and transformation initiatives.

• Operations remained strong in 2025, delivering resilient results despite external headwinds and market challenges.

• Dividend increased by 22% to 5.5p, with a £2bn share buyback completed, reducing shares outstanding by 25% at an average price of 136p.

• Significant progress in investment programme, focusing on regulated and contracted earnings and recycling capital from non-core assets.

• Transformation program delivered £100m net benefit in 2025, with a target to remove £500m from the cost base by 2030.

Financial highlights

• Adjusted EBITDA for 2025 was £1.4bn; adjusted EPS just over 11p.

• Operating cash flow exceeded £900m; free cash outflow of £200m after doubling investment to £1.2bn.

• Returned over £1bn to shareholders via dividends and buybacks; adjusted net cash closed at £1.5bn.

• Retail and Optimization delivered nearly £800m of EBITDA, with retail at £574m (flat year-on-year).

• Infrastructure EBITDA was £728m, lower due to asset sales, realized prices, and Q4 outages.

Outlook and guidance

• Expect to invest at least £700m in 2026, mainly in portfolio-strengthening assets.

• Targeting £1.7bn EBITDA by end-2028 and £2bn by 2030, with EPS expected to more than double over five years.

• 2026 guidance: Retail EBITDA £500m–£800m, Optimization ~£250m, Infrastructure £500m–£650m.

• Ongoing transformation program underpins top-line growth and cost efficiency, aiming for a flat nominal cost base by 2030.

• Net interest expense projected at ~£100m; structural reduction in effective tax rate anticipated.