Preliminary results for the year ended 31 December 2025

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Transforming Centrica

• 2025 earnings lower than 2024, although resilient against a challenging market backdrop.
• Strong strategic progress, including significant investments in Sizewell C and Grain LNG.
• Transformation programme ramping up, supporting future profitability.
• 2025 full year dividend per share increased by 22% to 5.5p, and £2bn share buyback completed.
• £1.1bn returned to shareholders in 2025, including £0.8bn through share buyback.
• Targeting £1.7bn EBITDA by end-2028, with growth to £2.0bn in 2030⁽ⁱ⁾ supported by transformation programme, further investment and expected nuclear life extensions that are yet to be approved.

“2025 has been a year of real momentum and we have made bold investments as we continue the fundamental transformation of Centrica. The environment has been challenging, and performance has varied across the business. However, we have remained disciplined, delivering strong operational performance and achieving customer growth across all our Retail businesses simultaneously for the first time in over a decade.

With major projects like Sizewell C, Grain LNG and our Meter Asset Provider laying the groundwork for more stable and predictable earnings, our long-term opportunities have never been better. Pausing the buyback enables us to prioritise investment that creates lasting value for shareholders, while continuing to deliver the reliable, affordable energy that households and businesses need to power economic growth through the transition.”

Chris O’Shea | Group Chief Executive

Financial Highlights

• Adjusted EBITDA of £1.4bn (2024: £2.3bn) with adjusted operating profit (AOP) of £0.8bn (2024: £1.6bn):
  • Retail adjusted EBITDA of £0.6bn (2024: £0.6bn), and AOP of £0.4bn (2024: £0.5bn) reflecting lower Home Energy Supply earnings, with negative weather and commodity curve impacts broadly offset by regulatory reconciliations and other cost phasing, alongside improved performance in Home Services. 
  • Optimisation adjusted EBITDA of £0.2bn (2024: £0.4bn), and AOP of £0.2bn (2024: £0.3bn) reflecting challenging market conditions for Gas and Power Trading.
  • Infrastructure adjusted EBITDA of £0.7bn (2024: £1.4bn), and AOP of £0.3bn (2024: £0.8bn) impacted by lower achieved prices, pausing of Rough storage activities and nuclear outages.
• Adjusted basic EPS of 11.2p (2024: 19.0p).
• Statutory operating profit of £0.1bn (2024: £1.7bn) includes a net loss on re-measurements of derivative energy contracts and exceptional items of £0.7bn (2024: £0.2bn profit), with £0.5bn of impairments across our late-life gas field assets and investment in Nuclear (excluding Sizewell C). After taking into account tax and interest, statutory basic EPS was a 1.5p loss (2024: 25.7p profit).
• Statutory net operating cash flow of £0.7bn (2024: £1.1bn) includes £0.1bn of margin cash and collateral inflow (2024: £0.1bn); closing 2025 margin cash posted of £0.1bn (2024: £0.1bn).
• Free cash outflow of £0.2bn (2024: £1.0bn inflow), with significant capital expenditure of £1.2bn (2024: £0.6bn) including Sizewell C, Grain LNG and strong progress in the Meter Asset Provider.
• Strong balance sheet and liquidity, with closing adjusted net cash of £1.5bn (2024: £2.9bn).
• The IAS 19 pension deficit increased to £295m (2024: £21m), largely reflecting updated assumptions following the triennial pension review, which was agreed in February 2025, partially offset by deficit contributions. On a roll-forward basis, the technical provisions deficit improved to ~£300m (2024: ~£450m), with the funding plan unchanged.

Strategic Highlights

Our strategy is to create value by building a portfolio with stable earnings and upside opportunities. We do this by focusing on our strategic value levers - operational excellence, commercial innovation, and investing for value - with 2025 being a year of strong progress across all three areas.

Operational excellence supporting commercial innovation

• Strong operational performance across Retail supporting record customer satisfaction (Net Promoter Scores), lower complaints, and an improved 4.4 star British Gas Trustpilot score.
• Customer growth across all Retail businesses, including establishing new recurring revenue streams such as warranty partnerships with leading original equipment manufacturers in Home Services.
• UK Home Services EBITDA within the guidance range one year early, supported by revenue growth and a strong focus on costs.

Investing for value

• £1.3bn capped investment in 3.2GW Sizewell C nuclear power station with a real allowed return on equity of 10.8%, generating a 12%+ IRR, and an expected Regulated Asset Base ("RAB") of £8bn by commercial operations. 
• Acquisition of highly contracted Grain LNG terminal in 50% partnership with Energy Capital Partners; £0.2bn equity investment (Centrica share), with expected unlevered IRR of ~9% (equity IRR of ~14%), and further upside from long-term site development opportunities. 
• Meter Asset Provider ("MAP") outperforming expectations. Fastest growing MAP in the UK, with over 1.6m meters now under management.
• Recycling capital and accelerating value delivery through the sales of most of Spirit Energy's producing assets other than Morecambe Hub, and the disposal of a number of non-core energy solutions businesses.
• Life extensions announced for Heysham 1 and Hartlepool nuclear power stations through to March 2028. Heysham 2 and Torness remain unchanged, expected to run through to March 2030. 
• Partnership with X-energy established to explore deploying Advanced Modular Reactors in UK.

2026 Outlook

• Retail expected to be within its £500m-£800m EBITDA guidance range.
  • Modest growth in UK Home Services.
• Optimisation expected to deliver EBITDA of around £250m, below £300m-£400m guidance range. 
• Infrastructure expected to be between £500m-£650m EBITDA.
  • MAP, Sizewell C and Grain LNG ~£175m. 
  • Centrica Energy Storage+ (Rough) expected to be around break-even. 
• Net interest expense is expected to increase to ~£100m.
• Structurally lower effective tax rate.
• Capital investment in 2026 of at least £0.7bn.
• Further details on our Infrastructure hedging positions are provided on page 17.

Segmentation Overview

As part of our focus to drive faster and more impactful decision making, enhanced delivery for customers and cost efficiencies, we have streamlined management structures to simplify the Group. Reflecting the reorganisation, our Retail, Optimisation and Infrastructure portfolio will become our three reportable segments:

• Within Retail we have created two separate divisions, Home and Business.
  • Home includes all residential retail activities across the UK and Ireland, covering home energy supply and services.
  • Business brings together all business energy supply and services activities across the UK and Ireland. These were previously split across British Gas Energy, Bord Gáis Energy and Centrica Business Solutions. 
• Optimisation comprises the activities previously reported as Centrica Energy, and the equivalent activities formerly reported as part of Bord Gáis Energy.
• Infrastructure includes Power, Gas and Customer Assets.
  • Power includes all power generation assets - our 20% stake in the UK's operating nuclear fleet, our investment in Sizewell C, and other power assets, principally our Irish assets and flexible and renewable assets previously reported within Centrica Business Solutions.
  • Gas includes our investment in Grain LNG, Spirit Energy and Centrica Energy Storage+ (Rough). – Customer Assets includes the MAP, previously reported within British Gas Energy.

To assist with the understanding of 2025 performance, our headline results under both segmentation structures can be found below:

Results under previous segmentation

(i) Restated for the allocation of corporate depreciation across relevant business units.

• British Gas residential energy supply delivered adjusted operating profit of £163m, within the medium-term sustainable AOP range under previous segmentation, although lower year-on-year with negative weather and commodity curve impacts offset by regulatory reconciliations and other cost phasing.
• British Gas Services & Solutions delivered £114m adjusted operating profit, a significant improvement, moving into its medium-term sustainable AOP range a year early, supported by revenue growth and a strong focus on costs. 
• Centrica Energy operating profit for the year was £150m, below its previous medium-term sustainable AOP range, reflecting challenging market conditions.
• Bord Gáis Energy and Business energy supply adjusted operating profit of £200m was at the top of the range, supported by a strong Business energy supply result. Updated segmentation result and guidance ranges

Updated segmentation result and guidance ranges

• Our revised guidance ranges have been simplified and refocused to adjusted EBITDA, which provides a clear view of operating performance before accounting adjustments such as depreciation, and is a more relevant performance metric as we continue to invest in growing our portfolio. There is no change to the total range for the Group or midpoint for Retail and Optimisation. The EBITDA ranges are equivalent to the prior AOP ranges, with no underlying changes.
• For more information on guidance ranges see page 9 to 10 of PDF document.