Centrica H1 Earnings Call Highlights

Centrica reported weaker first-half 2026 earnings, with adjusted EBITDA of GBP 737 million and free cash outflow of GBP 570 million, but it still raised its interim dividend by 9% and reiterated its long-term targets. Management said the results were weighed down by heavy transformation spending and external disruptions. Retail performance improved, but bad debt stayed elevated, with the U.K. energy supply bad-debt charge rising to GBP 216 million and outstanding billed/unbilled debt at GBP 2 billion. Centrica said customer satisfaction and self-service metrics are improving, while calling for stronger regulatory support on industry-wide debt issues. The company is leaning harder into infrastructure-led growth, highlighting investments in assets such as Severn, Sizewell B and other power infrastructure as it aims for more predictable cash flows. Centrica reaffirmed its 2030 goal of GBP 2 billion in EBITDA and doubling EPS, while saying Rough gas storage now depends on a government-backed framework to avoid closure.

Centrica reported lower first-half earnings for 2026 while raising its interim dividend and reiterating long-term targets, as executives said the company is investing heavily to reshape its portfolio toward more predictable infrastructure-led cash flows. Management said Centrica has continued its effort to become “a higher quality, more predictable business,” though he acknowledged that “not everything’s gone our way.” He cited the Middle East war’s impact on Centrica Energy, slower-than-desired delivery in parts of the portfolio and Retail growth that is “not yet” where management wants it. Chief Financial Officer Russell O’Brien said adjusted EBITDA was GBP 737 million in the first half, down from last year, while adjusted earnings per share were GBP 0.068. Free cash outflow was GBP 570 million, leaving the group with net cash of GBP 709 million at period end. Centrica raised its interim dividend by 9% to GBP 0.02. O’Brien said the results reflected a significant step-up in spending on transformation. Centrica invested just over GBP 90 million in the first half, including GBP 20 million of capital expenditure. Excluding the investment, EPS would have risen 8% year over year.

Retail EBITDA was GBP 346 million, slightly above last year, reflecting stronger operational performance and favorable price effects. O’Brien said those factors offset higher transformation investment, higher bad debt and a more normalized result in the business segment. Bad debt remained a major issue. O’Brien said the charge in the U.K. energy supply business was GBP 216 million, or 4% of revenue, compared with GBP 159 million, or 3%, a year earlier. He said billed and unbilled debt outstanding on the balance sheet after provisions stood at GBP 2 billion. Management said industry debt is forecast to reach GBP 7 billion by year-end, up from GBP 1.8 billion three or four years ago, and called for more leadership from the regulator Ofgem. Management said Centrica supports a longer-term social tariff using government data to distinguish between customers who cannot pay and those who choose not to pay. At the same time, Centrica pointed to improving customer metrics. O’Brien said customer satisfaction was up and engineer productivity was improving. Management said customer contact per customer was down 20% year over year, while most customers now self-serve through the app.

Centrica’s optimization business generated GBP 87 million of EBITDA in the first half. O’Brien said gas and power trading had a good first half, supported by structural volatility and as...