Engie's shares jumped more than 7% on Tuesday after the French utility posted FY25 results in line with forecasts and unveiled a £10.5 billion ($14.21 billion) deal to acquire U.K. Power Networks, its largest purchase to date. The transaction, valued at an enterprise price of 15.8 billion pounds, positions Engie as a major player in the British distribution market and sparked the rally.

FY25 EBITDA reached €14.7 billion, matching Morgan Stanley's consensus, while EBIT of €9.47 billion edged 1% above expectations. Net recurring income hit €4.9 billion, also 1% higher, and net financial debt fell to €38.9 billion, roughly 3% under market forecasts. Stripped of the UKPN impact, the 2026‑2028 guidance projects recurring net income of €4.6‑5.0 billion, implying 5‑6% EPS growth and a dividend yield above 5%.

Morgan Stanley analyst Arthur Sitbon expects the acquisition to be 3‑6% accretive to 2028 EPS, citing a rebalanced network exposure and a new growth engine. He argues the upgraded targets could lift Engie's total shareholder return into double‑digit territory and justify a valuation lift toward integrated‑peer multiples. The market now prices Engie with a stronger earnings outlook and dividend appeal.