Centrica pauses buyback as full-year profits drop

(Sharecast News) - British Gas owner Centrica said on Thursday that it was pausing its share buyback programme as it reported a decline in full-year operating profit in a "challenging environment", with varied performance across the business. In the year to the end of December 2025, operating profit fell to £814m from £1.5bn the year before. Adjusted earnings before interest, tax, depreciation and amortisation dropped to £1.4bn from £2.3bn.

The company's retail segment delivered adjusted EBITDA of £574m and adjusted operating profit of £424m, down from £611m and £458m, respectively.

Meanwhile, UK Home Energy Supply saw adjusted EBITDA fall to £224m from £331m and adjusted operating profit to £163m from £269m, with performance impacted by several factors. Centrica said warmer than normal weather was an £80m headwind, while the shape of the commodity curve also dented profitability.

The company lifted its full-year dividend per share by 22% to 5.5p.

It also said on Thursday that it was pausing its buyback programme as it believes "investment offers an opportunity to create more value for shareholders at this juncture".

Chief executive Chris O'Shea said: "2025 has been a year of real momentum and we have made bold investments as we continue the fundamental transformation of Centrica. The environment has been challenging, and performance has varied across the business. However, we have remained disciplined, delivering strong operational performance and achieving customer growth across all our Retail businesses simultaneously for the first time in over a decade.

"With major projects like Sizewell C, Grain LNG and our Meter Asset Provider laying the groundwork for more stable and predictable earnings, our long-term opportunities have never been better. Pausing the buyback enables us to prioritise investment that creates lasting value for shareholders, while continuing to deliver the reliable, affordable energy that households and businesses need to power economic growth through the transition."