Q1 2025 Engie SA Earnings Call Transcript

May 15, 2025 / 08:00AM GMT

Release Date Price: MXN274.93

Transcript

Key Points

Positve

Engie SA (ENGIY) reported an increase in EBIT for Q1 2025 compared to the previous year, showcasing resilience despite market normalization and geopolitical uncertainties.
The company successfully closed a significant nuclear deal in Belgium, transferring EUR12 billion of nuclear waste storage provisions, reducing financial uncertainty.
Engie SA (ENGIY) added over 0.6 gigawatts of renewable capacity, primarily in Latin America and Egypt, enhancing its renewable energy portfolio.
The company maintained a robust balance sheet with economic net debt down 4% to EUR46 billion, equating to 3x EBITDA, below the ceiling of 4 times.
Engie SA (ENGIY) confirmed its full-year guidance, expecting net recurring income group share between EUR4.4 billion and EUR5 billion, indicating confidence in future performance.

Negative

The company faces challenges in the US market due to uncertainties around the Inflation Reduction Act (IRA) and future tariffs, impacting renewable and battery projects.
Engie SA (ENGIY) experienced a decrease in cash flow from operations by EUR1.1 billion year-on-year, primarily due to margin calls and energy market normalization.
The company's Energy Management segment saw a significant organic decrease in EBIT, attributed to lower reserve reversals and increased competition.
Engie SA (ENGIY) noted a cautious approach from industrial customers due to macroeconomic uncertainties, potentially impacting future demand.
The B2C segment's exceptional Q1 performance included one-off events and timing effects that are expected to reverse in the upcoming quarters, indicating potential volatility.

Operator

Thank you for holding, and welcome to Engie's 2025 first-quarter results presentation. For your information, this call is being recorded. (Operator instructions) I will now hand over -- hand you over to Delphine Deshayes, Head of Investor Relations.

Delphine Deshayes

Engie SA - Investor Relations

Thank you, and good morning, everyone. It's my pleasure to welcome you to Engie's Q1 conference call. Shortly, Catherine and Pierre-Francois will present our first quarter performance, following which we will open the lines to Q&A. And with my polite request of limiting your questions to one or two only, please.

And with that, over to Catherine.

Catherine Macgregor

Engie SA - Chief Executive Officer, Director

All right. Thank you, Delphine, and good morning, everyone. I am pleased to report an excellent first quarter of 2025 with EBIT up versus last year despite normalization of energy markets over the last quarters and despite the uncertain geopolitical and economic environment.

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