2025 Interim Results

24 July 2025

Strategic delivery with focus on value creation

• Resilient performance in a challenging market.
• Organic customer growth across all energy supply businesses; Services losses remain a focus.
• £2.5bn of investment programme to 2028 now committed, including Sizewell C announcement.
• Interim dividend increased by 22% to 1.83p, consistent with intention to increase full year dividend per share to 5.5p; £2bn share buyback programme ongoing. 
• £1.6bn EBITDA by end of 2028⁽ⁱ⁾ underpinned; transformation programme supports further upside.

• Adjusted EBITDA of £0.9bn (H1 2024: £1.4bn) with first half adjusted operating profit (AOP) of £0.5bn (H1 2024: £1.0bn) comprising of:
  • Retail AOP of £0.3bn (H1 2024: £0.2bn) driven by improved performance in British Gas Services & Solutions and energy supply, which has been impacted by a number of external factors.
  • Optimisation AOP of £0.1bn (H1 2024: £0.3bn) reflecting challenging market conditions for our Gas and Power Trading business.
  • Infrastructure AOP of £0.2bn (H1 2024: £0.5bn) impacted by lower commodity prices in Spirit Energy and Nuclear, and lower seasonal gas price spreads in Centrica Energy Storage+ ("CES+").
• Net finance income of £26m (H1 2024: £20m) due to lower interest costs as a result of lower interest rates and a benefit from repurchasing debt in 2024, partially offset by lower interest income on cash balances.
• Adjusted basic EPS for the first half of 7.0p (H1 2024: 12.8p).
• Statutory operating loss of £69m (H1 2024: £1.7bn profit) includes a net loss on re-measurements of derivative energy contracts and impairments of assets of £618m (2024: £642m gain). Statutory basic EPS for the first half was 5.1p loss (H1 2024: 25.1p profit). 
• Statutory net operating cash flow of £0.3bn (H1 2024: £0.8bn) includes £22m of margin cash and collateral outflow (H1 2024: £0.1bn inflow), closing with total margin cash posted of £0.1bn.
• Modest increase in capital expenditure to £244m (H1 2024: £221m), as we retain our disciplined focus on returns.
• Free cash flow of £0.2bn (H1 2024: £0.8bn) reflects lower EBITDA and dividends from associates.
• Balance sheet remains strong, with closing adjusted net cash of £2.5bn (FY 2024: £2.9bn).
• The IAS 19 pension deficit increased to £315m in the period (FY 2024: £21m deficit), largely reflecting updated assumptions following the triennial pension review, which was agreed in February 2025. The technical provisions deficit and funding plan are unchanged.
• £0.5bn cash returned to shareholders in the first half of 2025; £374m share buyback and £150m dividends. In-line with progressive dividend policy, interim dividend per share increased to 1.83p.

Strategic Highlights 

Delivering our strategic priorities: operational excellence, commercial innovation, investing for value.

• Customer numbers for the period increased by 81k in British Gas Energy residential, including net organic growth of 12k, by 17k in Bord Gáis Energy and by 7k in small business customer sites.
• Increased profitability in British Gas Services & Solutions, with top-line revenue growth of 4% supported by stronger customer retention and continued focus on cost discipline. Commercial performance remains a key focus to reverse customer losses, which were 65k in the first half.
• Customer satisfaction improvements across Retail with higher net promoter score ("NPS"), an improved British Gas Trustpilot score of 4.3 stars and the Uswitch Energy Awards Best Overall Improvement winner for the second consecutive year.
• Delivering attractive returns from our investment programme:
  • £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.
  • 1m smart meters under management in our Meter Asset Provider (MAP) with low-risk 9%+ IRR.
  • Accelerating value with agreed sale of 46.25% interest in Cygnus gas field for total value of £215m.
  • Continuing to review the case for life extensions at our operating nuclear power stations.

Further Reading