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Investing.com -- Engie SA (EPA:ENGIE) on Thursday reported a softer third quarter, with EBIT excluding nuclear falling below expectations, but reaffirmed its full-year 2025 guidance at the upper end of its forecast range after maintaining solid cash generation through the first nine months.
The French energy group posted EBIT excluding nuclear of €1.25 billion in the third quarter, which Jefferies said was 7% below consensus and 17% under its own estimate.
The shortfall was mainly attributed to weaker contributions from renewables, retail and business-to-business operations, partially offset by a stronger networks performance.
Engie’s nine-month EBIT excluding nuclear totaled €6.3 billion, a 7.3% organic decline from a year earlier, while EBITDA excluding nuclear was €9.8 billion, down 6.2%.
Revenue for the first nine months of the year was €52.8 billion, up 0.2% on a gross basis and 1.8% organically. Cash Flow From Operations stood at €11.4 billion, compared with €11.8 billion in the same period of 2024.
Economic net debt fell by €1.4 billion to €46.4 billion as of Sept. 30, with a leverage ratio of 3.2 times.
Net financial debt increased by €2.7 billion to €36 billion due to €5.6 billion in capital expenditure, €4.4 billion in dividends, and €4.5 billion in nuclear-related payments in Belgium.
Engie maintained its 2025 outlook, expecting EBIT excluding nuclear in the upper half of its €8 billion to €9 billion range and net recurring income, group share, at the upper end of €4.4 billion to €5 billion.
The company also narrowed its recurring net financial cost range to €1.9 billion to €2.1 billion from the previous €2 billion to €2.2 billion.
“Engie has posted a robust performance over the first nine months of the year, despite a market environment characterized by weakening energy prices. Our cash flow generation remains very high, at €11.4 billion, which demonstrates the strength of our utility model and the quality of our earnings. Our performance plan has got off to a strong start, with a positive contribution of nearly €500 million over nine months,” chief executive Catherine MacGregor said in a statement.
Jefferies described the results as “soft” but said the reiterated guidance provided clearer visibility for the remainder of the year.
The brokerage said the weaker third quarter appeared to be driven by timing effects that could lead to a stronger contribution in the fourth quarter.
Engie’s renewables and storage capacity reached 55 gigawatts at the end of September, with another 6 gigawatts under construction.
The company signed 3.1 gigawatts of power purchase agreements during the period, including a 600-megawatt solar contract with Meta in Texas and a 15-year agreement with Apple in Italy for new wind and agrivoltaic projects.
In Belgium, the Doel 4 reactor was reconnected to the grid ahead of schedule in October following the restart of Tihange 3 in July.
Engie said it made the final payment to the Belgian state for the transfer of nuclear waste liabilities, completing the agreements related to its nuclear extension program.