The owner of British Gas has paused plans to buy back shares from shareholders after the company’s full-year profits fell by nearly 39%.
Centrica reported adjusted earnings of £1.42bn for 2025, down from £2.3bn after a “challenging” year for the business.
British Gas posted lower profits for the year despite modest growth in its customer base after milder weather saw households use less gas and electricity. The supplier’s adjusted profits fell to £309m from £364m year-on-year, despite a 1% increase in the number of household customers to nearly 8 million accounts.
The firm’s chief executive, Chris O’Shea, said: “The environment is challenging and performance is changing across the business.
“Pausing the buyback allows us to prioritize investment that creates lasting value for shareholders, while continuing to provide the reliable, affordable energy that households and businesses need to power economic growth through the transition.”
Shares in Centrica fell nearly 8% in early trading, leaving it at the top of the FTSE 100.
Centrica is making significant investments in the new Sizewell C nuclear plant in Suffolk and last year bought Europe’s largest gas import terminal at Grain LNG for £1.5bn. The company plans to invest billions in a gas storage facility in Ruff.
Its multi-billion-pound spending plans emerged as profits fell at its energy retail business for the first time in more than a decade despite simultaneous growth across its various retail businesses.
The company’s profits in the energy business were also hit by geopolitical instability, with outages at the UK’s nuclear reactor fleet also reducing earnings for the year.
Profits across the wider retail business were flat at £557m on the previous year due to higher revenues from its energy services and business solutions divisions.
