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Engie (ENGIY)
OTHER OTC:ENGIY
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ENGIE SA
(OTC:ENGIY)
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Rating:59Neutral
Price Target:
$36.00
▲(42.29% Upside)
Action:ReiteratedDate:03/02/26
The score is held back primarily by weaker financial quality—especially the 2025 swing to negative operating and free cash flow and elevated leverage. Offsetting positives include supportive earnings-call guidance and strategy (regulated-growth via UKPN, medium-term EBIT growth targets, dividend commitment) plus constructive technical trend and a solid dividend yield, though overbought indicators and a mid-range P/E limit upside.
Positive Factors
Renewables capacity additions
Sustained additions to wind, solar and BESS increase recurring cash flows via long-term contracts and PPAs, deepen technical expertise, and expand generation scale. Over multi-year horizons this strengthens ENGIE's renewable earnings base and reduces exposure to commodity-driven volatility.
Regulated networks growth
Network businesses with tariff mechanisms deliver predictable, regulated-like cash flows and higher margin stability versus merchant generation. Material EBIT growth from networks supports durable earnings resilience and provides predictable cash to fund renewables and infrastructure investments.
Management performance program
A defined, measurable performance program that already delivered sizeable EBIT gains indicates disciplined operational execution. If sustained, it can improve margins, fund investments and partially offset cyclical headwinds, strengthening medium-term profitability and cash conversion.
Negative Factors
Multi-year revenue decline
Sustained revenue contraction reduces scale benefits and weakens the company's ability to absorb fixed costs, pressuring margins and free cash flow. Over 2–6 months this trend constrains reinvestment capacity and makes execution of growth plans and dividend sustainability more challenging.
Rising leverage
An elevated and rising leverage profile limits financial flexibility for large capital projects typical in utilities, increases refinancing and interest risks, and reduces resilience to cash-flow shocks. High leverage can force prioritization of debt reduction over growth investments.
Cash generation deterioration
A sudden shift to negative operating and free cash flow signals structural pressure from working capital, capex or margin erosion. Persisting weak cash conversion forces external financing, risks dividend or capex cuts, and undermines the sustainability of the business model over the medium term.
ENGIE SA (ENGIY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$80.96B
Dividend Yield6.37%
Average Volume (3M)22.50K
Price to Earnings (P/E)19.9
Beta (1Y)-0.21
Revenue Growth2.35%
EPS Growth2.25%
CountryUS
Employees97,000
SectorUtilities
Sector Strength65
IndustryDiversified Utilities
Share Statistics
EPS (TTM)0.62
Shares Outstanding2,435,285,000
10 Day Avg. Volume19,847
30 Day Avg. Volume22,496
Financial Highlights & Ratios
PEG Ratio-1.27
Price to Book (P/B)1.71
Price to Sales (P/S)0.81
P/FCF Ratio-6.19
Enterprise Value/Market Cap1.39
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit6.96
Enterprise Value/Ebitda8.19
Forecast
1Y Price Target
$28.58Price Target Upside12.96% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)2.19
Revenue Forecast (FY)$81.19B
ENGIE SA Business Overview & Revenue Model
Company DescriptionENGIE SA engages in the power, natural gas, and energy services businesses. It operates through Renewables, Networks, Energy Solutions, Thermal, Supply, Nuclear, and Others segments. The Renewables segment comprises renewable energy generation activities, including financing, construction, operation, and maintenance of renewable energy facilities using various energy sources, such as hydroelectric, onshore wind, photovoltaic solar, biomass, offshore wind, and geothermal. The Networks segment comprises the electricity and gas infrastructure activities and projects, including the management and development of gas and electricity transportation networks and natural gas distribution networks in and outside of Europe, natural gas underground storage in Europe, and regasification infrastructure in France and Chile. The Energy Solutions encompasses the construction and management of decentralized energy networks to produce low-carbon energy and related services. The Thermal segment encompasses power generation activities using thermal assets; operation of power plants fueled mainly by gas or coal, as well as pump -operated storage plants; and financing, construction, and operation of desalination plants, as well as the development of hydrogen production. The Supply segment engages in the sale of gas and electricity to professional, individual, and residential clients. The Nuclear segment engages in the nuclear power generation activities. The company was formerly known as GDF SUEZ S.A. and changed its name to ENGIE SA in April 2015. The company was founded in 1880 and is headquartered in Courbevoie, France.
How the Company Makes MoneyENGIE generates revenue through multiple streams, primarily from electricity generation, natural gas distribution, and energy services. The company earns significant income from its renewable energy projects, which include wind, solar, and hydropower facilities, capitalizing on the global shift towards sustainable energy. Additionally, ENGIE provides energy efficiency solutions and consulting services, which contribute to its revenue by helping clients reduce their energy consumption and costs. Partnerships with various stakeholders, including governments and private enterprises, enhance its market reach and project funding. Furthermore, the company's investments in infrastructure and energy management systems create recurring revenue opportunities and long-term contracts, solidifying its financial footing in the evolving energy landscape.
ENGIE SA Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive strategic and financial picture: strong cash generation, record renewables additions, a major strategic acquisition (UK Power Networks) that materially increases predictable regulated earnings, and a sizable performance program that improved profitability. Offsetting items include a decline in net recurring income versus 2024 driven by market normalization, weather/volume headwinds in renewables, FX and scope headwinds, Belgian nuclear provisioning uncertainty, and near-term financing and integration requirements related to the UKPN acquisition. Management outlined concrete funding and disposal plans and reiterated dividend and credit-rating commitments, supporting confidence in the medium-term outlook.Q4-2025 Updates
Positive Updates
Strong cash generation and balance-sheet resilience
Cash flow from operations of EUR 13.6 billion in 2025 (up EUR 0.6 billion YoY) and EUR 40 billion generated over the last 3 years; economic net debt decreased by EUR 2.7 billion and economic net debt-to-EBITDA at 3.1x (below the 4.0x threshold). Net financial debt-to-EBITDA at 2.6x. Substantial free cash flow from networks and downstream activities.
EBIT (ex. nuclear) stability and medium-term growth target
EBIT excluding nuclear of EUR 8.8 billion in 2025 (described as virtually flat / ~2% organic growth) with a management target to grow EBIT excluding nuclear at a 7% CAGR over 2025–2028 and reach EUR 10.3–11.3 billion by 2028.
Record renewables & BESS additions and pipeline
Added over 6 GW of new renewables and BESS in 2025 (including 2.4 GW commissioned in the U.S. led by batteries); total renewable & BESS portfolio increased to 57 GW by end-2025 with almost 8 GW under construction. Signed 4.8 GW of PPAs in 2025 (3.6 GW corporate PPAs).
Infrastructure (networks) outperformance
Infrastructure delivered strong organic growth of 24% in 2025, driven by networks (new tariffs in France/Europe, execution and development). Networks RAV expected to grow >1/3 over 2025–2028 and power's share of Networks EBIT to rise to ~35% by 2028.
UK Power Networks acquisition—strategic and earnings accretive
Agreement to acquire UK Power Networks for an enterprise value of GBP 15.8 billion (~1.5x estimated RAV at March 2026). Transaction expected to be earnings accretive from year one, will materially increase regulated exposure, and grows group capital employed and Networks RAV (UKPN RAV to GBP 10.5 billion by March 2028).
Material performance program and commissioning contribution
Performance program delivered EUR 823 million of EBIT in 2025; commissioning of new assets contributed EUR 507 million — demonstrating execution and operational improvement (fixed legacy underperformers contributing EUR 368 million of the performance number).
Dividend policy maintained and shareholder returns
Proposed 2026 dividend of EUR 1.35 per share (payout ~67% on current share count), signaling commitment to shareholder returns and alignment with the 65–75% payout framework while keeping investment-grade rating ambition.
Negative Updates
Decline in net recurring income
Net recurring income, group share declined to EUR 4.9 billion in 2025 from EUR 5.5 billion in 2024 (≈ -10.9% YoY), reflecting market normalization and other headwinds despite being at the top end of guidance.
Market normalization hit Supply & Energy Management and Energy Management
Normalization of energy prices and reduced volatility weighed on Supply & Energy Management and Energy Management results; Energy Management had a weaker 2025 (lower volumes and less favorable hedging/market patterns), and B2B benefitted in 2025 from ~EUR 200 million of one-offs and ~EUR 100 million from high-margin legacy contracts that will normalize in 2026.
Weather/volume headwinds in renewables and capture spreads
Renewables and BESS faced headwinds from lower hydro and wind volumes in Europe and lower capture spreads, negatively impacting cash generation despite organic investment-driven growth (Renewables & BESS organic EBIT growth noted as +7% while Renewable & Flex Power organic growth cited at +3%).
FX and scope impacts
Sizable negative FX and scope impacts from Brazilian real and U.S. dollar movements and portfolio rationalization weighed on EBIT and growth comparisons.
Belgian nuclear provisions and regulatory uncertainty
Uncertainty around nuclear dismantling provisions: CPN recommended a decrease in provisions of ~EUR 1 billion (linked to lower uncertainties/higher rates) but ONDRAF issued a report suggesting a significant increase in estimated overnight costs; final CPN opinion expected no earlier than April, creating short-term regulatory and provisioning uncertainty; nuclear EBIT decreased due to phaseouts and outages.
Short-term leverage increase and funding requirements for UKPN
Net financial debt increased driven by the Belgian nuclear agreement and will temporarily rise due to the UKPN acquisition (equity check ~EUR 1.2 billion covered by committed bridge; planned financing mix includes ~EUR 5 billion of debt/hybrid, EUR 4 billion disposal program by 2028 and up to EUR 3 billion equity via accelerated bookbuild), creating near-term funding and execution requirements.
Non-recurring charges and impairments
Non-recurring items included restructuring costs of ~EUR 0.3 billion and impairments of ~EUR 0.8 billion in 2025 (driven by commodity price decreases in France, nonstrategic disposals and U.S. regulatory reforms), which reduced reported net income to EUR 3.8 billion group share.
Company Guidance
ENGIE reiterated a confident medium‑term outlook: EBIT excluding nuclear is targeted to grow at ~7% CAGR from EUR 8.8bn in 2025 to EUR 10.3–11.3bn in 2028 (with 2026 guidance EUR 8.7–9.7bn), net recurring income is seen at EUR 4.6–5.2bn in 2026 and EUR 5.2–5.8bn in 2028, and the Board will propose a EUR 1.35/share dividend (EUR 1.35 = 67% payout on current shares) within an unchanged 65–75% payout policy; the group plans EUR 34–38bn CapEx for 2026–28 (vs ~EUR 31bn prior plan), funded by expected CFFO of EUR 37–41bn, a EUR 6bn disposal program (EUR 4bn tied to the UKPN deal), up to EUR 3bn equity via accelerated bookbuild, and ~EUR 5bn of new debt/hybrid issuance, while retaining an economic net debt/EBITDA ceiling of 4x (3.1x at end‑2025, may exceed 4x in 2026 then fall below in 2027); performance savings are expected to contribute EUR 0.8–1.0bn over 2026–28, renewables & BESS EBIT is guided to EUR 2.8–3.2bn by 2028, power networks EBIT to EUR 1.6–1.8bn, group capital employed to rise from ~EUR 69bn (end‑2025) to ~EUR 100bn in 2028 with networks capital employed ~EUR 45bn, recurring net financial costs rising to ~EUR 2.4bn in 2026 and EUR 2.6–2.9bn in 2028, and a lower recurring effective tax rate targeted at 20–23% (vs 25.5% in 2025); the UK Power Networks acquisition (EV GBP 15.8bn, ~1.5x Mar‑26 RAV, RAV to GBP 10.5bn by Mar‑28, UKPN CFFO GBP 1.4bn, CapEx GBP 1.3bn, ~GBP 0.8bn EBIT y/e Mar‑26) is assumed consolidated from 1 July and expected to be earnings‑accretive from year one.ENGIE SA Financial Statement Overview
Summary
Income statement profitability has improved (2025 net margin ~5.3%; EBIT margin ~11.8%), but multi-year revenue declines (2023–2025) and a sharp 2025 deterioration in operating/free cash flow (OCF and FCF turning negative) materially raise financial risk. Leverage is also elevated with debt-to-equity rising to ~1.66 in 2025.Income Statement
Profitability has improved meaningfully versus the 2022 trough and the 2020 loss, with net margin rising from ~0.2% (2022) to ~5.3% (2025) and operating profitability remaining solid (2025 EBIT margin ~11.8%, EBITDA margin ~19.3%). However, revenue momentum is a clear weak spot: growth has been negative for three consecutive years (2023–2025), including a ~7.1% decline in 2025. In addition, 2025 gross margin (~12.3%) is sharply lower than prior years, suggesting either higher costs or a less favorable mix.62
Positive
Balance Sheet
The balance sheet reflects a leveraged utility profile, with debt consistently exceeding equity and debt-to-equity rising to ~1.66 in 2025 (vs. ~1.11 in 2021). Equity has trended down since 2021, while total debt has moved higher overall, increasing balance-sheet risk if cash generation is pressured. A positive offset is that profitability on equity has been reasonable in the mid-cycle (e.g., ~11.9% in 2024), but leverage remains the primary constraint on the score.55
Neutral
Cash Flow
Cash generation is the main concern: operating cash flow swung from strongly positive in 2023–2024 (~€13.1B each year) to negative in 2025 (~-€2.1B), and free cash flow also turned sharply negative in 2025 (~-€9.1B). While free cash flow growth is shown as positive in 2025 and free cash flow relative to net income appears unusually high, the absolute shift into negative operating and free cash flow indicates significant pressure from working capital, capital spending, or other cash demands. The 2025 cash conversion profile is therefore materially weaker and more volatile than prior years.32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 69.10B | 73.81B | 82.56B | 93.86B | 57.87B |
| Gross Profit | 8.51B | 24.35B | 25.65B | 19.33B | 19.00B |
| EBITDA | 13.34B | 16.14B | 17.44B | 8.79B | 10.42B |
| Net Income | 3.68B | 4.11B | 2.21B | 216.00M | 3.66B |
Balance Sheet | |||||
| Total Assets | 169.18B | 189.54B | 194.64B | 235.49B | 225.33B |
| Cash, Cash Equivalents and Short-Term Investments | 17.08B | 17.74B | 17.35B | 16.42B | 14.22B |
| Total Debt | 54.54B | 52.01B | 47.29B | 40.59B | 41.05B |
| Total Liabilities | 128.37B | 148.09B | 158.92B | 196.21B | 183.35B |
| Stockholders Equity | 32.94B | 34.56B | 30.06B | 34.25B | 36.99B |
Cash Flow | |||||
| Free Cash Flow | -9.10B | 3.76B | 5.79B | 2.21B | 1.32B |
| Operating Cash Flow | -2.12B | 13.14B | 13.12B | 8.59B | 7.31B |
| Investing Cash Flow | 143.12M | -11.34B | -11.82B | -4.29B | -11.04B |
| Financing Cash Flow | 158.49M | -1.46B | -218.00M | -2.98B | 4.85B |
ENGIE SA Technical Analysis
Positive
25.30
Price Trends
29.06
Positive
26.59
Positive
24.25
Positive
Market Momentum
1.27
Negative
66.62
Neutral
81.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ENGIY, the sentiment is Positive. The current price of 25.3 is below the 20-day moving average (MA) of 31.51, below the 50-day MA of 29.06, and above the 200-day MA of 24.25, indicating a bullish trend. The MACD of 1.27 indicates Negative momentum. The RSI at 66.62 is Neutral, neither overbought nor oversold. The STOCH value of 81.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ENGIY.
ENGIE SA Peers Comparison
UnderperformOutperform
Sector (66)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $7.25B | 9.63 | 13.35% | 12.98% | -0.38% | -53.94% | |
66 Neutral | $17.65B | 18.10 | 5.60% | 3.62% | 6.62% | 11.55% | |
63 Neutral | $62.50B | 35.05 | 5.85% | 2.91% | 9.07% | -28.58% | |
59 Neutral | $80.96B | 19.93 | 13.04% | 6.37% | 2.35% | 2.25% | |
59 Neutral | $18.33B | 40.00 | 7.99% | 4.92% | 8.14% | ― | |
54 Neutral | $10.12B | 10.52 | 23.02% | 5.06% | -1.55% | 12.83% |
* Utilities Sector Average
ENGIY
ENGIE SA
33.41
16.49
97.52%
BIP
Brookfield Infrastructure
39.68
10.19
34.54%
CIG
Companhia Energetica Minas Gerais
2.28
0.65
39.96%
SRE
Sempra Energy
95.67
26.50
38.30%
AES
AES
14.21
3.63
34.26%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.