Centrica (LSE:CNA) reported adjusted EBITDA of £737m for the six months to 30 June, down from £900m a year earlier, as asset disposals and production outages in its Spirit Energy business weighed on the result.
The energy supplier and infrastructure investor, owner of British Gas, lifted its interim dividend 9% to 2.0p per share from 1.83p.
Adjusted operating profit fell to £497m from £549m, while adjusted earnings per share slipped to 6.8p from 7.0p; statutory operating profit swung to a £710m profit from a £69m loss a year earlier, boosted by a £213m net gain on exceptional items and derivative re-measurements.
Infrastructure adjusted EBITDA dropped to £355m from £505m, hit by the Spirit Energy asset sales, production outages and lower nuclear prices, partly offset by Rough indigenous gas sales. Retail adjusted EBITDA rose slightly to £346m from £338m on improved commercial performance, though UK residential bad debt climbed to £216m from £159m.
Free cash flow swung to an outflow of £570m from a £244m inflow, with capital investment rising to £698m from £244m, including the £367m Severn CCGT power station acquisition. Closing adjusted net cash stood at £709m, down from £1,487m at the start of the year.
"Volatility across energy markets has created challenges in some parts of our business, and some of our delivery has been slower than we would like," said Chris O'Shea, Group Chief Executive.
Centrica reiterated its long-term targets of £2bn adjusted EBITDA and doubling EPS by 2030, and guided Retail adjusted EBITDA towards the lower end of its £500m-£800m range for 2026, with Infrastructure expected at £650m-£750m.
News Intelligence what this means for the company
Centrica's first-half adjusted EBITDA fell 18% to £737m, driven by Spirit Energy asset disposals and production outages, yet management raised the interim dividend 9% and reiterated long-term targets of £2bn EBITDA and doubled EPS by 2030. The cash position weakened materially: adjusted net cash halved from £1.49bn to £709m, reflecting a £570m free cash outflow in the half and £698m capital investment including the £367m Severn CCGT acquisition, though this sits against the company's stated long-term earnings ambitions.
The dividend raise despite earnings pressure signals confidence in cash generation, but the 50% cash burn and guidance for Retail EBITDA toward the lower end of its range (£500m–£800m for 2026) suggest near-term headwinds. The long-term targets remain intact, anchored partly on the Sizewell B CfD strike price of £70.50/MWh through 2055, but execution risk has risen as capital intensity climbs and market volatility persists.
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