Centrica: Profit & Payout
Centrica Reports H1 2026 Profit, Raises Dividend While Advancing Strategic Simplification
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Key Points
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Infrastructure earnings fell 30% to £355 million in the six months to 30 June 2026, driven by Spirit Energy disposals, outages and lower realised prices from its nuclear operations.
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Nuclear generation volumes were 11% lower in the first half, reflecting planned outages and higher levels of unplanned outages, contributing to weaker performance in the period.
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Free cash flow swung to an outflow of about £570 million, with roughly £698 million of capital investment (including the Severn gas-fired power station acquisition and Meter Asset Provider expansion) and net cash narrowing to about £709 million.
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The board reaffirmed long-term targets to generate around £2 billion of adjusted EBITDA and to double 2025 earnings per share by 2030, signaling ambition beyond the current cycle.
Centrica swung to a first-half profit of £672 million before tax in 2026, up from a £43 million loss a year earlier, as the British Gas owner raised its interim dividend to 2.0 pence per share, payable on 22 September. Proactive Investors reported shares fell 3.4% to 173.65p on the day, as investors focused on lower underlying earnings and a cautious outlook.
Strip out one-off gains of £213 million and the underlying profit before tax was £459 million. Adjusted earnings per share came in slightly lower on a like-for-like basis. The company warned that full-year earnings will be weighted toward the first half, with energy-market volatility continuing to weigh on results.
Infrastructure Earnings Drop 30% on Nuclear Outages
Infrastructure earnings fell 30% to £355 million in the six months to 30 June 2026. Spirit Energy asset disposals, planned outages, and lower prices from nuclear operations all dragged on results. Nuclear generation volumes were 11% lower than a year ago, hit by both planned and unplanned outages. Proactive Investors said underlying EBITDA came in at £737 million for the period.
Market Screener noted Centrica also lowered its outlook for its Energy unit in 2027, adding to investor concern. Retail EBITDA edged higher, offering some offset, but was not enough to prevent the share price slide. The company said volatility across energy markets continues to shape performance.
Cash Outflow Widens as Centrica Invests Heavily
Free cash flow swung to an outflow of around £570 million in the first half. Capital investment reached roughly £698 million. That includes the purchase of the Severn gas-fired power station and an expansion of the Meter Asset Provider business. Net cash narrowed to about £709 million as a result.
Revenue in aggregate rose to about £10.18 billion. Excluding one-time items, revenue fell to roughly £10.53 billion from £11.93 billion a year ago. The board said distributable reserves are sufficient to fund the 2.0p interim dividend. The group is also continuing to simplify its portfolio, including progressing Spirit Energy disposals and decommissioning the Morecambe gas field.
1,300 Job Cuts Announced Alongside Results
Centrica announced plans to cut 1,300 jobs over two years as part of a major company overhaul. Around 500 roles are in customer operations, covering contact-based jobs. A further 800 positions are also at risk, Lincolnshire Live reported, affecting service and offshore staff.
The National reported the cuts span contact-centre roles and offshore operations. Centrica said the restructuring is part of its portfolio simplification push. The company is also progressing its involvement in the Sizewell C nuclear project, which forms a key part of its long-term growth strategy.
Centrica Eyes £2 Billion EBITDA and Doubled EPS by 2030
Despite the near-term pressure, the board reaffirmed its long-term targets. It wants to generate around £2 billion of adjusted EBITDA annually and to double its 2025 earnings per share by 2030. Those are ambitious goals given current market headwinds.
The company said it expects full-year earnings to be skewed toward the first half. That signals a softer second half ahead. Energy-market volatility, nuclear availability, and the pace of portfolio disposals will all be key factors to watch in the months ahead.
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