ENGIE (ENGIE.PA): Strong 2026Q leading to 2026FY guidance upgrade

Research evidence excerpt

ENGIE (ENGIE.PA): Strong 2026Q leading to 2026FY guidance upgrade

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31 Jul 2026 06:03:41 ET │ 11 pages

ENGIE (ENGIE.PA)

Strong 2Q26 leading to 2026FY guidance upgrade

CITI'S TAKE

Buy Engie delivered strong set of numbers for 2Q26 with EBIT ex Nuclear at

EUR1.85bn (+35% YoY) which was c. 22% above our forecasts (consensus Price (30 Jul 26 17:30) €26.07

not available, See Figure 1). The beat was generally spread across few Target price €32.00

divisions i.e. Supply&Energy Management, Networks through positive Expected share price return 22.7%

scope effect and Gas generation. On the back of 1H26, Engie increased its Expected dividend yield 5.2%

2026 guidance for NRIgs at EUR4.9-5.5bn (EUR4.6-5.2bn previously, Expected total return 27.9%

4.8bn consensus) quoting positive scope effects, currency fluctuations,

Market Cap €66,281M higher market volatility and better outcome from performance plan. Even

US$76,406M though one should not extrapolate all of these effects (Energy

Management extra profits or other positive effects do not change next

year outlook) we view this results as strong and expect positive market

reaction. Piotr DzieciolowskiAC

+48-72-155-0181

Divisional performance — The divisions which contributed most to 2Q26 positive piotr.dzieciolowski@citi.com

surprise were: 1) Supply&Energy Management - delivered EUR241m in 2Q24

(+265%) driven by a strong performance in gas activities supported by favourable

market conditions. 2) Power Networks (new sub-segment) through positive scope

effect of c. EUR0.2bn and 3) Gas generation - EBIT in 2Q26 was EUR240m (-7%

YoY), mainly due to the expected decrease in captured spreads in Europe but it was

still c. EUR0.1bn better than we anticipated.

Guidance upgrade — Engie raised 2026 net recurring income Group share guidance