ENGIE: Revenue Down 9.5% in Q1, 2026 Outlook Confirmed
ENGIE released its first quarter 2026 results on Thursday, showing a revenue contraction to 20.6 billion euros (−9.5% organically) and a decline in EBIT excluding nuclear to 3.4 billion euros (−6.6% organically), reflecting the anticipated normalization of energy markets. However, the group maintains its 2026 guidance with a recurring net income expected between 4.6 and 5.2 billion euros and continues to accelerate its investments in renewable energies and electrical networks.
The announcement coincides with ENGIE’s expected completion of the acquisition of UK Power Networks, an operation described as strengthening its presence in regulated activities. The quarter was also marked by a 3.0 billion euro accelerated capital increase, which contributed to the reduction of economic net debt.
Organic Decline in Revenue and EBIT, Nuclear Affected
Revenue stood at 20.6 billion euros in the first quarter of 2026, down 9.5% organically compared to the same period in 2025. EBITDA (excluding nuclear) was 4.6 billion euros, down 4.4% organically, while EBIT excluding nuclear reached 3.4 billion euros (−6.6% organically).
This contraction reflects several factors: the normalization of electricity prices in Europe after an exceptional year in 2025, a decrease in captured spreads in gas generation (−37.2% organically), and a negative normative temperature effect of 90 million euros compared to the first quarter of 2025 for the Networks, B2C, and B2B activities in France. Nuclear particularly suffered with a 72.6% organic decline, mainly due to the shutdown in 2025 of three Belgian reactors and the transfer of two others to a 50% joint venture.
Internationally, ENGIE was penalized by the unplanned shutdown of a gas pipeline in Peru and the gradual exit from coal in Chile. On the other hand, the Renewables & BESS activities recorded an organic growth of 2.6%, supported by the commissioning of new assets and favorable prices in Latin America.
Strengthened Cash Position, Controlled Leverage
Despite the operational contraction, ENGIE consolidated its financial position during the quarter. Operating cash flow amounted to 3.0 billion euros, down 1 billion compared to Q1 2025 (an exceptionally high period), but in line with the EBITDA decline.
Net financial debt decreased by 3.7 billion euros to reach 35.2 billion euros as of March 31, 2026. This improvement mainly stemmed from the operating cash flow of 3.0 billion euros and the accelerated capital increase (ABB) of 3.0 billion euros, partially offset by 1.3 billion euros in investments. Economic net debt decreased by 4.0 billion euros to 41.2 billion euros, and the net debt / EBITDA ratio improved to 2.9x, remaining on target to be less than or equal to 4.0x.
Available liquidity stood at 22.0 billion euros as of March 31, 2026, including 18.0 billion euros in cash, providing a comfortable cushion for planned investments.
Acceleration of the Energy Transition and Completion of UK Power Networks
ENGIE continued to execute its energy transition strategy with several major initiatives. The completion of the acquisition of UK Power Networks, announced on Thursday, occurred two months ahead of the initially communicated schedule, strengthening the group's presence in regulated activities and consolidating its utility profile.
In the field of renewable energies, the 93 projects under construction represent a total capacity of 6.6 gigawatts as of the end of March 2026. In Europe, ENGIE accelerated the development of battery storage with 400 megawatts of new projects launched in Spain and France. The group thus increased its BESS capacity in Europe to over one gigawatt across eight countries. In Latin America, the Assú Sol photovoltaic complex in Brazil (753 MW) reached full commercial operation in February 2026, becoming the largest operational solar project of the group.
In networks, ENGIE won new transmission line concessions in Brazil for 143 kilometers and signed an agreement to acquire 100% of the Aguaytía-Pucallpa line in Peru (132 km). Local Energy Infrastructures continues its trajectory with 586 heating and cooling networks in the portfolio as of the end of March 2026 (an increase of 17 since the end of 2025), in line with the goal to reach 800 by 2030.
In terms of supply, ENGIE announced in March 2026 the acquisition of 100% of IGNIS Luz, the energy supply division for SMEs of the Spanish group IGNIS, an operation expected in mid-2026 subject to regulatory approvals. This acquisition strengthens ENGIE's position in the Spanish market. Concurrently, the group signed an agreement for the sale of its stakes in Qatar in gas, continuing the rationalization of its thermal portfolio initiated in 2025.
