London, Feb 19, 2026, 11:09 GMT — Regular session
- Shares in Centrica tumbled roughly 7% as the British Gas owner halted its buyback program and slashed its energy trading outlook.
- The company is bracing for increased transformation costs, though it’s still aiming for profit growth down the line.
- Investors want to see if the guidance holds up—and they’re also looking for fresh cues on cash returns.
Centrica Plc shares slumped Thursday. The British Gas parent hit pause on its share buyback and flagged that profit at its energy trading division is set to fall short of projections.
Centrica’s recent buybacks have played a major role in propping up the stock, so Thursday’s announcement puts earnings volatility in its Optimisation business front and center. That division, essentially the company’s trading and optimisation shop, sees its results fluctuate depending on market swings.
Centrica has now attached a figure to its restructuring: the company expects to spend around 600 million pounds on the transformation programme. The aim, though, is to achieve underlying cost savings of 500 million pounds by 2030.
The stock sank about 7% to near 181 pence in London, making it one of the FTSE 100’s worst performers.
The company has lowered its 2026 forecast for Optimisation to roughly 250 million pounds, down from the previous 300 million to 400 million pound range. JPMorgan analysts flagged that the revised guidance and extra costs “could lead to near-term estimate downgrades”. Reuters
Centrica’s adjusted EBITDA, the company’s chosen gauge for core earnings, dropped to 1.417 billion pounds for 2025, down from 2.305 billion the previous year. Softer results in infrastructure and trading pulled the number lower, even as retail held up. EBITDA excludes interest, tax, and certain non-cash costs.
The company put forward a final dividend of 3.67 pence per share, bringing the total payout for the year to 5.5 pence. Its £2 billion buyback has wrapped up. “Pausing the buyback enables us to prioritise investment,” chief executive Chris O’Shea said. Centrica Plc
Investors are eyeing the Rough gas storage site, too. Centrica expects Rough to break even in 2026. Operations were paused last year—seasonal gas spreads had made the facility unviable. The company is waiting on a British government gas storage consultation, which could end up changing how sites like Rough operate.
Risks remain in the opposite direction. If trading conditions worsen, Optimisation earnings could take a further hit. The cost of transformation might also climb or savings could take longer to materialize, tightening the leeway for cash returns.
Investors are zeroing in on the results presentation transcript, which should hit the company website soon. As for shareholder returns, Centrica’s 2025 final dividend goes ex-dividend April 9, the AGM lands on May 7, and payment is set for May 14.
