Equity Snap: Centrica (CNA LN): Lowering Centrica Energy 2027 guide

Research evidence excerpt

Equity Snap: Centrica (CNA LN): Lowering Centrica Energy 2027 guide

23 July 2026

Equity Snap: Centrica (CNA LN) Equities Multi-Utilities

Lowering Centrica Energy 2027 guide United Kingdom

◆ FY26 outlook unchanged, yet lowering FY27 guide for Charles Swabey*

Centrica Energy. Transformation and investments Global Utilities & Renewables Analyst HSBC Bank plc

progressing well charles.swabey@hsbc.com

+44 20 3268 3954

Meike Becker*

Centrica (CNA LN, GBp180, Hold, TP GBp205) Senior Global Utilities & Renewables Analyst

HSBC Bank plc

(Priced as of 22 Jul 2026)

meike.becker@hsbc.com

+44 20 7991 6441

Headline: Centrica reported a beat compared to consensus expectations, with 1H

2026 adj. EBITDA of GBP737mn, down 18 % YoY (+2% vs consensus), and adj.

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

EPS of GBP6.8p, down 3% YoY (+13% vs consensus). Overall, Centrica has shown not registered/ qualified pursuant to FINRA regulations

good progress on the investment (Severn CCGT, MAP) and transformation program

(1H 2026 spend: GBP92mn).

• Retail: 1H 2026 EBITDA of GBP346mn (+2% YoY) reflecting unfavourable

weather and transformation investment, which were somewhat offset by

positive price effects and improved commercial performance.

• Optimisation: 1H 2026 EBITDA of GBP87m (-6% YoY) with the soft

performance due to phasing and lack of optimisation opportunities in LNG.

• Infrastructure: 1H 2026 EBITDA of GBP355m ( -30% YoY), reflecting sale

of Spirit Energy and outages, with the company expecting to benefit from

higher prices in 2H 2026.

Distributions: Interim dividend of GBP2p, implying a 9% YoY growth, compared to

FY26 consensus at 11% YoY. No buybacks announced as expected.

Balance sheet: adj net cash position falling to GBP0.7bn, lower than GBP1.5bn at