ENGIE (ENGI) Q4 2025 earnings summary

Executive summary

• FY2025 delivered robust financial performance, with net recurring income Group share of €4.9bn at the upper end of guidance and strong cash generation of €13.6bn, despite volatile geopolitical and energy market conditions.

• Completed a pivotal acquisition of UK Power Networks, rebalancing the business toward regulated electricity infrastructure and enhancing growth prospects, with UK becoming the second-largest EBIT contributor.

• Transitioned Belgian nuclear operations to quasi-regulated status, eliminating merchant exposure and nuclear waste liabilities, with net financial debt increasing by €5.7bn due to the agreement.

• Record 6.2 GW of renewable and battery capacity added, reaching 57.2 GW installed and 8 GW under construction, with renewables now 50% of total capacity.

• Maintained a strong integrated model, supporting resilience and growth across geographies and business lines.

Financial highlights

• EBIT excluding nuclear was €8.8bn, up 2% organically, with EBITDA excluding nuclear at €13.4bn, up 2.8% organic year-over-year.

• Net recurring income group share reached €4.9bn, down from €5.5bn in 2024.

• Cash flow from operations rose to €13.6bn, up €0.6bn year-over-year.

• Proposed dividend of €1.35 per share for 2025, a 67% payout ratio.

• Net financial debt at €38.9bn, up €5.7bn, mainly due to the Belgian nuclear deal; economic net debt at €45.2bn, down €2.7bn.

Outlook and guidance

• Targeting a 7% CAGR in EBIT (excluding nuclear) from 2025-2028, reaching €10.3-11.3bn by 2028.

• Recurring net income Group share expected to rise to €5.2-5.8bn by 2028.

• Dividend policy maintained at 65%-75% payout of recurring net income, with a floor of €1.10 per share.

• Capex plan of €34-38bn over 2026-2028, with 90% allocated to renewables, batteries, and infrastructure.

• Cash flow from operations projected at €37-41bn over 2026-2028.