ENGIE Operating Profit Rises 10.9% in Third Quarter, Beats Expectations
Key Facts
ENGIE said earnings before interest and taxes, excluding nuclear, rose 10.9% organically in the third quarter of 2026, signaling improved operating performance during the period. Reuters reported that quarterly earnings, according to its calculations, were about €1.7 billion, above the average analyst forecast of €1.6 billion. It also reported that group earnings for the quarter increased 35.7% year on year. The quarterly figures were part of nine-month results that showed slower organic growth in operating earnings. On a reported basis, EBIT excluding nuclear was €7.0 billion in the nine months, up 9.7%, including a contribution from UK Power Networks, and 3.3% organically.
The quarterly results were partly driven by the infrastructure business, which posted earnings of €790 million, up 62% from the same period a year earlier, Reuters said. The news agency said the increase benefited from a full quarter’s contribution from UK Power Networks. For the nine months, the infrastructure business recorded EBIT of €3.014 billion, up 4.3% organically. By contrast, EBIT at the renewables and flexible power business fell 2.6% organically to €2.576 billion. The results highlight diverging performance across the businesses, with infrastructure growing while renewables and flexible power declined over the same period.
ENGIE's revenue totaled €54.3 billion in the first nine months, up 2.9% on a reported basis and 2.5% organically from the same period a year earlier. In light of its performance, the company said it expects 2026 recurring net income attributable to the group to reach the upper end of a range of €4.9 billion to €5.5 billion. It also expects EBIT excluding nuclear to come in at the upper end of its guidance range of €9.2 billion to €10.2 billion. The raised outlook was met with caution by analysts at JPMorgan, Reuters reported, who said a larger-than-expected increase in net debt limits the impact of improved guidance. The analysts linked this to higher commodity costs, which increased margin requirements and spending on gas inventories.
On liquidity, cash flow from operations was €7.5 billion in the nine months, down €4.0 billion year on year. ENGIE said the decline in cash flow was largely linked to an adverse €3.6 billion movement in working capital requirements. This included a negative impact of €1.1 billion from gas inventories, €1.1 billion from operating working capital and €1.5 billion from margin calls. The chief financial officer said working capital requirements rose in 2022 and 2023, then reversed in 2024 and 2025. The company expects a moderate increase in these requirements, subject to market conditions, the CFO added.
Economic net debt to earnings before interest, taxes, depreciation and amortization stood at 4.2 times following the acquisition of UK Power Networks, and the company said it aims to improve the ratio to about 4.0 times by year-end. In the market, ENGIE shares were steady at €24.07 at 10:30 GMT on November 5, after falling at the start of trading following the results, according to Reuters. ENGIY shares closed at $27.84 on November 13, according to EL7 data. The company extended to December 12, 2026, the deadline for agreeing on the main terms of the Belgian state's potential acquisition of its nuclear activities. Full-year 2026 financial results are scheduled for release on February 25, 2027.