Centrica’s full-year revenue fell by 9% to £22.4bn (£22.3bn expected), driven by lower commodity prices.
Underlying cash profits (EBITDA) fell by 39% to £1.4bn (£1.3bn expected). The decline was driven by its Optimisation business which fell well short of expectations due to unfavourable energy prices and the pausing of energy storage.
Underlying free cash flow fell from an inflow of £1.0bn to an outflow of £0.2bn, largely due to higher capital expenditure. The net cash position fell from £2.9bn to £1.5bn.
In 2026, Retail cash profits are expected to land in the £0.5-0.8bn range, while Optimisation cash profits are expected to be around £250mn.
The full-year dividend increased 22% to 5.5p per share. Share buybacks have been paused.
The shares fell 8.4% in early trading.
Our view
HL view to follow.
Centrica key facts
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This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
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