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Investing.com -- Engie (EPA:ENGIE) shares rose more than 2% on Thursday after the company reported first-quarter EBIT excluding nuclear of €3.7 billion, topping consensus expectations.
The results were 10% higher than the FactSet consensus, supported by stronger performance in the company’s retail and energy management divisions.
The company’s Supply and Energy Management business, formerly known as GEMS, delivered first-quarter EBIT of €1.29 billion, 78% above Jefferies estimates.
Within that segment, both the B2C (retail) and B2B & Energy Management units contributed to the beat.
Jefferies analysts said the retail business benefited from favorable timing, a colder climate, and a low comparison base tied to customer retention efforts in the first quarter of 2024.
The B2B segment’s earnings declined year over year, but the decrease was smaller than expected due to a limited normalisation effect and reversal of a prior timing gain.
EBIT from the nuclear segment totaled €406 million in the quarter, roughly 80% higher than consensus projections aided by higher plant availability during the period.
Engie’s economic net debt at the end of the first quarter was €46.1 billion, compared with €47.9 billion at the end of 2024.
The company’s leverage factor remained at 3x, providing 1x net debt-to-EBITDA headroom, according to Jefferies.
In the Renewables and Flexible Power division, first-quarter EBIT came in at €1.15 billion, which was 15% below Jefferies’ expectations.
The shortfall was linked to lower results in renewables and battery energy storage systems.
Jefferies said the segment was affected by foreign exchange pressure from the Brazilian real, reduced hydro volumes, and weaker European power prices. Those impacts were partly offset by stronger gas generation.
The Infrastructure segment reported EBIT of €1.45 billion, 1% ahead of Jefferies’ forecast. The result included a beat in Networks and a miss in Local Energy Infrastructures.
Engie maintained its full-year 2025 guidance, projecting EBIT excluding nuclear between €8 billion and €9 billion and net recurring income group share of €4.4 billion to €5 billion.
The company also confirmed a recurring effective tax rate of 22% to 24% for 2025, slightly below the 22% to 25% average it projected for 2025 through 2027 at the end of 2024.