Core Insights - Centrica plc reported a decline in earnings for 2025 but increased its dividend and continued significant investments to enhance EBITDA by 2030 [1] Financial Performance - Adjusted EBITDA for 2025 was £1.4 billion, down from £2.3 billion in 2024, with adjusted operating profit decreasing to £814 million from £1.6 billion [1] - Adjusted earnings per share fell to 11.2p from 19.0p year-on-year, attributed to weaker commodity pricing, nuclear outages, and subdued trading conditions [1] - Statutory operating profit dropped to £0.1 billion from £1.7 billion in 2024, impacted by £0.7 billion in exceptional charges and remeasurement losses on energy derivatives, and £0.5 billion in impairments related to gas fields and nuclear investments [2] - Statutory loss per share was 1.5p, compared to a profit of 25.7p in 2024 [2] Dividend and Shareholder Returns - The full-year dividend was increased by 22% to 5.5p per share, up from 4.5p in 2024, aligning with the company's progressive dividend policy [3] - Centrica returned £1.1 billion to shareholders in 2025, including £0.8 billion through share buybacks and £0.2 billion in dividends, completing a £2 billion buyback program before pausing further repurchases to focus on investment opportunities [3] Cash Flow and Capital Expenditure - Net operating cash flow decreased to £0.7 billion from £1.1 billion in 2024, while free cash flow turned into a £0.2 billion outflow due to a significant rise in capital expenditure to £1.2 billion, more than double the previous year's £0.6 billion [4] - Adjusted net cash fell to £1.5 billion from £2.9 billion, although the balance sheet remains strong [4] Segment Performance - Retail adjusted EBITDA remained stable at £0.6 billion, supported by cost discipline and improved performance in Home Services, despite weaker earnings in UK Home Energy Supply [5] - Customer growth was reported across all retail businesses for the first time in over a decade, along with improved customer satisfaction metrics [5] - Optimisation earnings, including gas and power trading, saw adjusted EBITDA halve to £0.2 billion due to challenging market conditions [5] - Infrastructure earnings experienced a sharper decline, with adjusted EBITDA falling to £0.7 billion from £1.4 billion, driven by lower realized commodity prices and nuclear outages [6] Strategic Focus - Centrica's 2025 strategy aims to reposition the portfolio towards more stable, infrastructure-like earnings [7] - The company committed £1.3 billion to the Sizewell C nuclear project, targeting a real allowed return on equity of 10.8% and a double-digit internal rate of return, expecting to build an £8 billion regulated asset base by the time of commercial operation [7]