Published by Global Banking and Finance Review
Posted on August 1, 2025
3 min readLast updated: January 22, 2026
Engie remains committed to US renewable projects despite a 9.4% drop in earnings due to lower energy prices.
By America Hernandez
PARIS -French utility Engie plans to move forward with its existing wind, solar and battery projects in the United States despite President Donald Trump rolling back subsidies, its CEO said on Friday.
Europe's largest gas network operator reported a 9.4% fall in first-half earnings before interest and taxes (EBIT), excluding nuclear, to 5.1 billion euros ($5.82 billion) due to lower energy prices.
"These results are solid in normalising market conditions and in an uncertain economic and geopolitical context," CEO Catherine MacGregor said.
After reviewing its project pipeline in the U.S. - a major growth market for Engie, where it holds 8 Gigawatts (GW) of renewables - the group will continue building 1.1 GW of projects that have already received final investment decisions.
"Our clients and counterparties in the U.S. have adapted to the new market reality, notably by adding contractual clauses that better share residual risks, which will allow us to proceed with these three projects with confidence," MacGregor told journalists on a call.
Engie will also work to reduce the number of Chinese-made parts in its supply chain in a bid to keep benefiting from U.S. tax credits.
It could lose other U.S. subsidies for early-stage renewable projects if a decision on tightening the definition of the start of construction, expected later this month, means Engie is deemed to have begun building after 2025.
MacGregor said Engie would be more cautious when making FIDs in the U.S., but she remained hopeful that rising power demand would create additional opportunities for renewables.
If necessary, Engie has options to build in other countries to meet its growth targets, she added.
Engie shares fell as much as 8% before paring early losses to stand 2% lower at 19.20 euros by 1142 GMT, with analysts at Barclays pointing to the company confirming rather than raising its 2025 guidance. The shares are up 28% year-to-date.
Engie, which is exiting nuclear and coal to focus on natural gas and renewables, expects EBIT, excluding nuclear, of between 8 billion and 9 billion euros this year, and a group share of net recurring income between 4.4 billion and 5 billion euros.
Colder weather and higher transportation and usage tariffs boosted natural gas distribution in the first half, with earnings from energy infrastructure activities up 38% to 1.9 billion euros.
But it failed to offset a fall in energy production and sales caused by lower prices, less rainfall and nuclear outages.
Energy management and sales fell 32% to 1.5 billion euros, as energy prices normalised after a better-than-usual 2024, CFO Pierre-Francois Riolacci said.
EBIT at Engie's batteries and power production unit fell 13.4% to 1.98 billion euros.
In March, the company finalised an agreement with Belgium, to transfer its two newest nuclear reactors into a joint venture to operate through 2035, with waste-related liability falling on the state. Its two other operational reactors in the country will be retired by year-end.
($1 = 0.8757 euros)
(Reporting by America Hernandez in Paris. Editing by Susan Fenton, Kirstenn Donovan)
Engie plans to continue with its existing wind, solar, and battery projects in the U.S. despite the rollback of subsidies, focusing on adapting to new market realities.
Engie reported a 9.4% fall in first-half EBIT to 5.1 billion euros due to lower energy prices, which impacted their overall financial performance.
Engie could lose U.S. subsidies for early-stage renewable projects if the definition of the start of construction is tightened, which may affect their growth plans.
Engie expects EBIT, excluding nuclear, to be between 8 billion and 9 billion euros for the year.
If necessary, Engie has options to build renewable projects in other countries to meet its growth targets.
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