UPDATE: Centrica hikes dividend but pauses share buybacks to invest
Centrica PLC on Thursday declared a higher annual dividend despite swinging to an after-tax loss amid a ‘challenging’ trading environment, but the FTSE 100 company said it is pausing its share buybacks in order to invest in its infrastructure portfolio, including nuclear power.
The Windsor, England-based owner of British Gas lifted its final dividend for 2025 by 22% to 3.67 pence per share from 3.00p. That brought its full-year payout to 5.5 pence per share from 4.5p in 2024, also up 22%.
Centrica noted that it returned £1.1 billion in total to shareholders during 2025, including £800 million though share buybacks. It completed its overall £2 billion share buyback programme in January this year, repurchasing a quarter of its total share capital.
However, Centrica said: ‘We are now pausing the programme as we believe investment offers an opportunity to create more value for shareholders at this juncture. We will retain our capital discipline, the balance sheet will remain under constant review and excess capital will be returned to shareholders.’
Centrica shares were down 5.6% to 185.00 pence, the worst performer in the FTSE 100 index, itself down just 0.7%.
Centrica reported pretax profit of £112 million for 2025, sharply down from £1.68 billion in 2024, as gross profit fell to £2.83 billion from £4.09 billion. The company swung to an attributable loss of £72 million from a £1.33 billion profit and to a basic loss per share of 1.5p from earnings of 25.7p.
Revenue decreased 2.1% to £19.49 billion from £19.91 billion, as the average achieved gas sales price per therm at Spirit Energy fell by 19% to 107 pence per therm in 2025 from 132p in 2024.
‘The environment has been challenging, and performance has varied across the business,’ Chief Executive Chris O’Shea said. ‘However, we have remained disciplined, delivering strong operational performance.’
He added: ‘With major projects like Sizewell C [nuclear plant], Grain LNG and our Meter Asset Provider laying the groundwork for more stable and predictable earnings, our long-term opportunities have never been better.’
Adjusted earnings before interest, tax, depreciation and amortisation were £1.42 billion in 2025, down 39% from £2.31 billion in 2024. Centrica said it is targeting £1.7 billion in Ebitda by the end of 2028, with growth to £2.0 billion in 2030.
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