Engie Shares Jump on Upgraded Guidance After $14.2 Billion UK Power Networks Acquisition

By Adria Calatayud and Adam Whittaker

Shares in France's Engie jumped after it raised its 2026 outlook and projected earnings growth in coming years due to its $14.2 billion acquisition of UK Power Networks.

In midday trade, shares were up 7.9% to 29.72 euros.

Engie said it now expects a recurring net profit of between 4.6 billion and 5.2 billion euros ($5.43 billion-$6.14 billion) in 2026, up from its previous guidance of 4.2 billion to 4.8 billion euros. The increase reflects the integration of Engie's proposed acquisition of electricity distributor UK Power Networks from Hong Kong billionaire Li Ka-shing's CK Group for 10.5 billion pounds ($14.24 billion).

The deal would make the U.K. Engie's second-largest market.

The transaction is a long-awaited catalyst for the stock and helps diversify the business, Jefferies analysts wrote. The assets have a track record of outstanding operational performance and are being purchased at a reasonable valuation, they added.

The company also set a new 2028 target for recurring net profit to reach between 5.2 billion and 5.8 billion euros.

Investors weren't put off after restructuring costs and impairment charges hurt last year's net profit. Engie said late Wednesday that full-year net profit amounted to 3.83 billion euros compared with 4.11 billion euros in 2024. It booked impairment losses of 778 million euros, mainly due to lower commodity prices, sales of noncore assets and U.S. regulatory changes, and restructuring costs of 303 million euros.

Revenue declined to 71.94 billion euros from 73.81 billion euros.

On a recurring basis, the group's net profit fell 12% to 4.9 billion euros. Analysts had forecast recurring net profit at 4.87 billion euros, according to consensus estimates compiled by the company.

Write to Adria Calatayud at adria.calatayud@wsj.com and Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

February 26, 2026 05:57 ET (10:57 GMT)