Centrica, the parent company of British Gas, has announced a significant pause in its share buyback program after reporting a sharp 39% decline in full-year profits for 2025. The energy giant revealed that adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) dropped to £1.4 billion, down from £2.3 billion the previous year. Despite this substantial fall, the results slightly exceeded average analyst expectations, which had forecasted £1.3 billion.
CEO Addresses Challenging Year and Strategic Shift
Centrica CEO Chris O'Shea described 2025 as a "challenging" period for the business, acknowledging varied performance across different sectors. He highlighted that the company has maintained discipline, achieving strong operational results and customer growth across all retail divisions simultaneously for the first time in over a decade. O'Shea emphasized that this momentum is driven by bold investments aimed at fundamentally transforming Centrica.
Focus on Long-Term Value Over Short-Term Returns
O'Shea defended the decision to halt the share buyback, arguing it prioritizes long-term shareholder value. He pointed to major projects like Sizewell C, Grain LNG, and the Meter Asset Provider initiative as foundations for more stable and predictable future earnings. According to O'Shea, pausing the buyback allows Centrica to channel resources into investments that create lasting value, while continuing to provide reliable and affordable energy to support economic growth during the transition period.
Broader Economic Context: Youth Employment Trends
In related economic news, concerns over artificial intelligence's impact on the job market are influencing employment patterns among younger generations. New data from Employment Hero indicates a shift towards blue-collar work, with Gen Z workers—those born between 1997 and 2012—driving job growth in construction and trade industries. This trend emerges against a backdrop of rising youth unemployment and fears about AI displacing traditional roles.
The HR platform's report shows that hiring for Gen Z employees surged by 16.8% in January compared to the same month last year, significantly outpacing other age groups. This suggests a growing preference for hands-on, trade-based careers amid technological uncertainties.
Upcoming Economic Indicators
Market watchers are eyeing key economic releases scheduled for today, including the CBI Industrial Trends Orders at 11am GMT and US International Trade in Goods and Services data for December and the full year 2025 at 1.30pm GMT. These figures will provide further insight into global economic health and trade dynamics.
