Engie Reports Higher Profit and Upgraded Outlook for 2025

Engie SA sees significant profit growth despite weak revenues. The firm upgrades its outlook for 2025 and 2026, signaling confidence in future performance.

Date: 27-02-2025

AI Rating: 7

Profit Growth and EPS Improvement
Engie SA reported a remarkable 85.9% increase in net income for fiscal 2024, rising to 4.11 billion euros from 2.21 billion euros in the previous year. This significant leap in profitability is a strong indicator for investors looking for firms with robust earnings potential.

Further, earnings per share (EPS) climbed to 1.65 euros, a notable improvement from the prior year’s 0.88 euros, suggesting an effective management strategy and a return of value to shareholders.

Revenue Decline
Despite the positive profit metrics, Engie experienced a 10.6% fall in revenues, totaling 73.81 billion euros compared to 82.57 billion euros the previous year. This revenue decline, reported as a 10.7% drop on an organic basis, may raise some concerns amongst investors regarding growth sustainability.

Net Recurring Income
Net recurring income Group share saw a modest increase of 3.1%, reflecting stability in the company's core operations, reaching 5.5 billion euros up from 5.4 billion euros. This stability can be appealing for investors despite the broader revenue decline.

Dividend Payout Proposal
The Board's proposal for a dividend payout ratio of 65% of net recurring income, equating to a dividend of 1.48 euros per share, speaks to the firm’s commitment to return value to shareholders despite fluctuating revenues. Such actions may bolster investor confidence.

Positive Outlook for 2025 and Beyond
Engie has upgraded its net recurring income target for 2025 to between 4.4 billion euros and 5.0 billion euros, indicating a shift to a more favorable business environment. This is a positive development as it elevates expected earnings into a range that exceeds previous guidance.

Furthermore, with projections aiming for continued income growth into 2026 and 2027, there is a solid basis for potential stock price increase driven by investor optimism.

Stocks: ENGIY