Company Reports

Engie is the third-largest European utility after Enel and Iberdrola. Historically a gas utility, Engie lacked exposure to electricity networks that are growing fast now due to high investments needed to accommodate renewables expansion. It reduced its shortfall with the GBP 15.9 billion acquisition of UK leading electricity distribution networks company UKPN announced in February 2026. Electricity networks should contribute to around 15% of the group's EBIT by 2028 versus 8% in 2024. Gas networks' EBIT contribution will remain dominant at around 25% of the 2028 EBIT.

European Union gas storage was at 63% on Aug. 25, 17% below the average of the last five years. This has boosted short-term European gas and power prices.

Engie's first-half recurring EBIT decreased by 4% year over year to EUR 5.4 billion. Recurring net income decreased by 3% in the first half to EUR 3 billion. The group raised its full-year net income guidance by 6% to EUR 4.9 billion-EUR 5.5 billion. Shares are up by 5% intraday July 31.

On July 17, the European Commission proposed an overhaul of the EU Emission Trading Scheme that slows the tightening of emission allowances supply after 2030 while extending support for energy-intensive industries. EUA prices were little changed on July 17 as the proposals had leaked beforehand.

Engie's first-quarter EBIT decreased by 15% year over year and by 8% excluding nuclear. The group confirmed its full-year guidance, including recurring net income in a EUR 4.6 billion-EUR 5.2 billion range, aligned with our EUR 5.1 billion estimate.

On April 30, Engie announced it had signed a letter of intent with the Belgian government setting out the framework for exclusive negotiations regarding the acquisition by the latter of Engie's Belgian nuclear activities. Shares went up by 5% on the news.

Engie is the third-largest European utility after Enel and Iberdrola. Historically a gas utility, Engie lacked exposure to electricity networks that are growing fast now due to high investments needed to accommodate renewables expansion. It reduced its shortfall with the GBP 15.9 billion acquisition of UK leading electricity distribution networks company UKPN announced in February 2026. Electricity networks should contribute to around 15% of the group's EBIT by 2028 versus 8% in 2024. Gas networks' EBIT contribution will remain dominant at around 25% of the 2028 EBIT.

Engie released solid 2025 earnings and announced the acquisition of the leading UK distribution networks company, UKPN, from CK Infrastructure Holdings for GBP 10.5 billion, implying an enterprise value of GBP 15.9 billion, or 14% of Engie's EV. The deal is expected to complete in mid-2026.

Engie is one of the three largest integrated international European utilities, along with Enel and Iberdrola.

The European utilities sector increased by nearly 8% since the end of September, outperforming the market by 5% due to stabilizing interest rates, solid third-quarter results, and hopes that artificial intelligence growth will boost electricity consumption in Europe.

Engie's third-quarter EBIT decreased by 30% year over year, worsening from a 9% fall in the first half because of earnings normalization from energy management and gas generation. Management reaffirmed its full-year guidance, expecting results to reach the upper end of its targets.

European utilities shares decreased by 3% since the end of June, underperforming the market by about 6%.

Engie reported first-half EBIT of EUR 5.6 billion, down 12% amid soft performance from the energy management and nuclear segments. Management reaffirmed its guidance for full-year 2025.

On July 1, 2025, the US Senate passed its version of the tax bill, with language tweaked to be more favorable toward renewable energy credits compared with the draft released over the previous weekend.

European utilities rose by 12% in the second quarter, outperforming the market by 10%.

First-quarter EBIT was flat at EUR 4.13 billion. Full-year guidance was confirmed.

On May 12, the US House Ways and Means Committee released its budget reconciliation bill. The bill includes updates to key clean energy incentives established or extended under the Inflation Reduction Act.

Engie is one of the three largest integrated international European utilities, along with Enel and Iberdrola.

European utilities increased by about 10% in the first quarter of 2025 thanks to good full-year results, attractive shareholder remuneration, and limited exposure to US tariffs. The latter was key in the material outperformance of the sector.

We confirm our EUR 18 fair value estimate after no-moat Engie released 2024 results, in line with the consensus it polled and raised its 2025 and 2026 net income guidance in line with our estimates, but well above consensus. Rolling over its three-year strategic plan to 2027, the group targets net income above our estimate for that year. It will pay a 2024 dividend of EUR 1.48, 3.5% above last year and implying a juicy 9% yield. That said, the valuation upside is more limited with the shares up by 6% at the time of writing.