ENGIE (ENGI) Q4 2024 earnings summary

Executive summary

• Achieved strong financial and operational performance in 2024, with net income above €5 billion for the third consecutive year and at the upper end of guidance.

• Accelerated growth in renewables, battery storage, and power networks, with record commissioning and expansion.

• Significant de-risking via EU approval of the Belgian nuclear agreement, reducing nuclear waste liability and stabilizing future operations.

• Proposed dividend of €1.48 per share for 2024, up from €1.43, with a payout ratio of 65%.

• Progressed on Net Zero and decarbonization targets, with increased share of renewables and reduced GHG emissions.

Financial highlights

• EBIT excluding Nuclear was €8.9 billion, down 6% year-on-year; Net recurring income group share increased 3% to €5.5 billion.

• Cash flow from operations remained stable at €13.1 billion, matching the 2023 record.

• Net financial debt rose to €33.2 billion; economic net debt at €47.9 billion; leverage ratio at 3.1x.

• Capex reached €10.0 billion, with 84% allocated to Renewables, Energy Solutions, and Flex Gen.

• Revenue was €73.8 billion, down 10.6% year-over-year.

Outlook and guidance

• Upgraded 2025 net recurring income group share target to €4.4–5.0 billion; 2027 guidance anticipates mid-single-digit year-on-year rise.

• From 2026, earnings mix becomes more stable and utility-like, with reduced exposure to open market power prices.

• Maintained strong investment grade ratings and stable credit ratios, with economic net debt/EBITDA at 3.1x.

• Increased dividend floor from €0.65 to €1.10, maintaining 65%-75% payout range.

• Long-term target: economic net debt/EBITDA ratio ≤4.0x.