1H26 Results – 2026 guidance increase on strong cost savings and Energy Management

Research evidence excerpt

1H26 Results – 2026 guidance increase on strong cost savings and Energy Management

Update

July 31, 2026 06:40 AM GMT

Morgan Stanley Europe S.E., Paris Branch+MENGIE | Europe Arthur Sitbon, CFA

Equity Analyst

1H26 Results – 2026 guidance Arthur.Sitbon@morganstanley.comMorgan Stanley & Co. International plc+ +33 1 42 90 71-03

Marina Fuentes Juan

Research Associateincrease on strong cost savings Marina.Fuentes.Juan@morganstanley.com +44 20 7425-2268

Robert Pulleyn

Equity Analyst and Commodity Strategistand Energy Management

Robert.Pulleyn@morganstanley.com +44 20 7425-4388

Sarah E Lester, CFA

AlphaSignals Earnings Reaction Equity Analyst

Sarah.Lester@morganstanley.com +44 20 7425-0551

Strengthens our thesis Modest upside Meaningful revision higher Arthur Descazeaud

Impact to our thesis Financial results versus consensus Direction of next 12-month Research Associate

consensus EPS Arthur.Descazeaud1@morganstanley.com +44 20 7677-1282

Source: Company data, Morgan Stanley Research

ENGIE (ENGIE.PA, ENGI FP)

Top Pick

Key Takeaways Utilities | France

We expect a positive reaction from ENGIE shares following the group's 1H26 Stock Rating Overweight

results. Industry View Attractive

Price target €31.00

Engie raised its 2026 recurring net income guidance by ~6% at the mid-point Shr price, close (Jul 30, 2026) €26.07

52-Week Range €29.55-17.00

from €4.6-5.2bn to €4.9-5.5bn. Mkt cap, curr (mn) €63,734

Net debt (12/26e) (mn)* €69,150

The increase is largely driven by higher EBIT contribution thanks mainly to strong EV, curr (mn)* €123,674

cost savings and former GEMS. * = GAAP or approximated based on GAAP

The new recurring net income guidance is ~5% above consensus.

Engie raises 2026 recurring net income guidance, new guidance is ~5% above

consensus.