Published by Global Banking & Finance Review®
Posted on February 25, 2026
4 min readLast updated: April 2, 2026
Add as preferred source on GoogleEngie raised its medium-term targets, lifting 2026 net recurring income to €4.6–€5.2bn and EBIT ex-nuclear to €8.7–€9.7bn. The upgrade exceeds its 2025 strategic guidance and frames the 2026–2028 plan.
By America Hernandez
PARIS, Feb 25 (Reuters) - French utility Engie will buy electricity distributor UK Power Networks for 10.5 billion pounds ($14.2 billion) in a bid to expand its power business, the company said on Wednesday as it reported flat full-year earnings and revised upward its outlook for the coming years.
The deal, due to close in mid-2026, is expected to boost per-share earnings from the first year, the company said. UK Power Networks is owned by Hong Kong-listed CK Infrastructure Holdings (CKI).
Engie, which produces, trades and sells electricity and gas, is looking to buffer its business from energy-market fluctuations caused by geopolitics. Regulated assets like power distribution networks earn fixed fees on energy volumes transported, with usage set to rise as European countries increasingly push the transportation and industrial sectors to electrify.
"We've said nearly two years ago we wanted to strengthen our presence in electricity networks, specifically distribution networks ... today we really feel we are making this ambition a reality," Engie CEO Catherine MacGregor said on a press call.
The company lost a major source of gas supply from Russia's Gazprom following the invasion of Ukraine in 2022, and three early-stage offshore wind projects in the U.S. were frozen last year by President Donald Trump.
The acquisition will make Britain Engie's second-most important country in terms of earnings before interest and tax (EBIT) after France, MacGregor said.
UK Power Networks operates 192,000 km (119, 300 miles) of power lines serving 8.5 million customers across London and the southeast and eastern parts of England.
In a statement, CKI said it expects to report an effective gain of about HK$14.5 billion ($1.85 billion) from the transaction.
"The net proceeds are intended to be used by the CKI Group to pursue new investment or acquisition opportunities and for general working capital," it added.
The Hong Kong-listed shares of CKI were up 2.7% on Thursday. Shares of affiliated companies CK Hutchison and Power Assets rose more than 3%.
DEBT-AND-EQUITY FINANCED DEAL
Engie expects net recurring income attributable to the group of between 4.6 billion and 5.2 billion euros in 2026, up from a previous range of 4.2 billion to 4.8 billion euros.
Excluding nuclear, 2026 EBIT is expected to be between 8.7 billion euros and 9.7 billion euros.
By 2028, Engie expects a group share of recurring net income of 5.2 billion to 5.8 billion euros and EBIT, excluding nuclear, of 10.3 billion to 11.3 billion euros.
MacGregor said the deal would not affect Engie's dividend nor its investment-grade rating.
The deal will be financed via 5 billion euros' worth of debt and hybrid securities, up to 3 billion euros in new shares, plus 4 billion euros' worth of asset disposals through 2028.
FULL-YEAR EARNINGS FLAT, MISSING EXPECTATIONS
Engie’s full-year results were down 1% — at the top end of company guidance, but missing analyst expectations, as higher gas sales and deliveries during colder weather failed to offset lower hydropower production due to less rain.
EBIT excluding nuclear for 2025 was 8.8 billion euros, versus 8.9 billion euros at the end of 2024.
Engie’s group share of net recurring income was 3.8 billion, versus 4.1 billion euros the previous year.
Analysts had expected EBIT excluding nuclear of 9.1 billion euros and group share of net recurring income of 4.9 billion euros, according to a consensus compiled by LSEG.
Fourth-quarter operating profit was 2.5 billion euros, versus 1.8 billion euros in the same period a year earlier — a 39% increase linked to the divestment of gas-fired and desalination assets in Kuwait and Bahrain.
Engie Chairman Jean-Pierre Clamadieu will step down next year as he reaches the statutory age limit, the company added. Michel Giannuzzi, chairman and former CEO of French glass bottlemaker Verallia, will replace him.
($1 = 0.7380 pounds)
($1 = 7.8183 Hong Kong dollars)
(Reporting by Anna Peverieri in Barcelona, Mrinmay Dey in Mexico City, America Hernandez in Paris and Donny Kwok in Hong Kong; Editing by Maju Samuel, Anne Marie Roantree and Thomas Derpinghaus)
Engie raised its medium-term guidance, including higher 2026 targets for net recurring income and EBIT excluding nuclear as part of a 2026–2028 plan.
2026 net recurring income rises to €4.6–€5.2bn from €4.2–€4.8bn, and EBIT excluding nuclear is set at €8.7–€9.7bn, above the earlier indicated range.
The targets were outlined on February 25, 2026, as reported by Reuters in a market update.
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