ENGIE Reports Recurring Earnings of €4.9 Billion for 2025

ENGIE Achieves Strong 2025 Results and Enters New Growth Phase

ENGIE has delivered robust financial results for 2025, reaching the top end of its forecasted range and proposing a higher dividend. The company emphasized the beginning of a new expansion period, fueled by the growth of its networks and unprecedented additions to its renewable energy portfolio.

Financial Highlights

• Net recurring income attributable to the group was €4.9 billion, while net income attributable to the group stood at €3.8 billion.
• Total revenue amounted to €71.9 billion, reflecting a 2.5% decrease compared to the previous year, or 0.7% lower on an organic basis.
• EBITDA, excluding nuclear activities, remained steady at €13.4 billion, marking a 2.8% organic increase. EBIT, also excluding nuclear, reached €8.8 billion, up 2.2% organically.
• Operating cash flow rose to €13.6 billion from €13.1 billion the year before.
• Net financial debt increased by €5.7 billion year-over-year to €38.9 billion, mainly due to payments related to the Belgian nuclear agreement. However, economic net debt dropped by €2.7 billion to €45.2 billion, with the economic net debt to EBITDA ratio holding steady at 3.1x.

Dividend and Shareholder Returns

The board has recommended a dividend of €1.35 per share for 2025, representing a 67% payout of net recurring income attributable to the group.

Operational Achievements

• ENGIE added 6.2 GW of renewable and battery storage capacity during 2025, increasing its total installed capacity in these areas to 57.2 GW by year-end. Nearly 8 GW of additional projects are currently under construction.
• The company secured 4.8 GW in corporate power purchase agreements over the year.
• Network operations delivered a significant boost, with EBIT from Networks rising 28.8% organically. This was driven by new tariffs in France and Europe, better operational efficiency, and tariff adjustments in Latin America.
• In Belgium, ENGIE completed life extension projects for the Tihange 3 and Doel 4 reactors, transferring them into a joint venture equally owned with the Belgian government.

Outlook and Strategic Investments

Looking forward, ENGIE anticipates net recurring income attributable to the group for 2026 to be between €4.6 billion and €5.2 billion. For the 2026–2028 period, this figure is expected to reach €5.2 billion to €5.8 billion by 2028, with EBIT excluding nuclear forecasted to range from €10.3 billion to €11.3 billion by that year.

Over the next three years, the company plans to invest between €34 billion and €38 billion in gross capital expenditures, with approximately 90% dedicated to renewables, battery storage, and infrastructure. By 2028, ENGIE aims for 67% of EBIT to come from regulated or long-term contracted activities. The group also announced an agreement to acquire all shares of UK Power Networks, reinforcing its presence in regulated electricity networks and making the UK its second-largest market by EBIT contribution.

By Charles Kennedy for Oilprice.com