Beating the consensus of 3.3 billion euros, EBIT (excluding Nuclear) reached 3.4 billion euros, a decrease of 8.4% reported and 6.6% organically, compared to a particularly strong first quarter of 2025 and reflecting a normalization of the market.

The energy utility faced a total negative currency impact of 49 million euros during the quarter, primarily linked to the depreciation of the US dollar. Furthermore, the group was affected by normative temperature effects, which generated a negative variance of 90 million euros compared to Q1 2025 for the Networks, B2C, and B2B divisions in France.

During this three-month period, cash flow from operations stood at 3 billion euros, down 1 billion euros compared to the first quarter of 2025, in line with the decline in EBITDA following the nuclear exit.

Mixed performance by business segment

The breakdown by business segment shows a contrasted picture for this first quarter.

EBIT for Renewables & BESS (Battery Energy Storage Systems) rose by 2.6% organically, driven by the contribution of new assets commissioned, a favorable price effect in Latin America, and improved operational performance.

EBIT for Gas Generation fell by 37.2% organically, mainly due to the expected decline in captured spreads in Europe.

EBIT for Networks grew by 0.7% organically, supported by tariff increases in Europe implemented during 2025 and solid operational performance. These positive factors were mitigated in France by a negative weather effect due to warmer temperatures than last year.

In the Supply and Energy Management division, B2C EBIT grew by 8.6% organically. This growth was primarily driven by efficient portfolio management and strong operational performance. Conversely, B2B EBIT decreased by 29.4% organically, mainly due to less pronounced seasonality effects this year and a progressive decline in margins on contracts historically signed in a high-volatility environment. Commercial momentum remains solid.

In this segment, Engie experienced no disruption for its gas customers thanks to the diversification of its supply portfolio, despite the ongoing geopolitical crisis in the Middle East.

'Engie has achieved a solid start to the year, marked by good financial performance and robust operational execution. We continued to develop our activities in renewables and batteries, as close as possible to the needs of local regions and our customers, as well as in power grids, with the win of new projects in Latin America. In the Middle East, our teams have been fully mobilized to ensure the safety of all our employees as well as the continuity of our operations, in close collaboration with our local stakeholders', commented Catherine MacGregor, CEO of Engie, in response to the quarterly release.

2026 outlook maintained

Alongside the disclosure of its quarterly results, the energy transition player announced the completion of the acquisition of UK Power Networks, expected today, nearly two months ahead of the announced schedule. This is a structural milestone that strengthens the company's presence in regulated activities and its utility profile.

Furthermore, the group has entered into discussions with the Belgian government to transfer all of its nuclear activities to the state.

In a global economic context marked by uncertainty, the energy group confirmed its outlook for the year 2026. Net recurring income Group share is expected to be between 4.6 and 5.2 billion euros. EBIT excluding nuclear is anticipated within an indicative range of 8.7 to 9.7 billion euros.

Oddo BHF remains optimistic

Oddo BHF highlights three encouraging points in this publication.

First, the performance plan is on track for the year with a contribution of 120 million euros in the first quarter of 2026, which should provide positive momentum for earnings.

Second, the acquisition of UK Power Networks, finalized two months ahead of schedule, will contribute to results earlier than expected.

Finally, the underperformance in gas generation is partly due to non-recurring factors.

The analyst maintains an outperform rating on the stock with an unchanged price target of 34 euros. 'Our valuation is based on a discounted cash flow (DCF) approach by business sector', the broker explained to justify its decision.