UK's Yu Group 2025 revenue growth misses estimates; sees flat EBITDA in 2026

Yu

17/03/2026 07:10

Overview

UK energy supplier's 2025 revenue rose 8% but missed analyst expectations

Adjusted EBITDA for 2025 beat consensus, rising 4% to £51 mln

Company to invest £9 mln to double market share, tempering 2026 profit growth

Outlook

Yu Group sees 2026 revenue in the range of £850 mln to £875 mln

Company expects adjusted EBITDA and PBT in 2026 to be in line with 2025

Company expects commodity prices to fluctuate in 2026 due to geopolitical and macroeconomic factors

Result Drivers

METER POINT GROWTH - Revenue growth driven by 49% increase in meter points supplied and 14% rise in energy volume supplied

LOWER COMMODITY PRICES - Revenue per MWh fell 6% as global commodity prices declined, impacting revenue growth despite higher volumes

MARGIN PRESSURE - Gross margin declined to 14.3% from 14.5% as normalising market prices increased competition and squeezed margins

Company press release: ID:nRSQ8540Wa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Revenue
Miss
GBP 700 mln
GBP 715.95 mln (3 Analysts)
FY Adjusted EBITDA
Beat
GBP 51 mln
GBP 49.42 mln (3 Analysts)
FY Pretax Profit
Miss
GBP 49 mln
GBP 50.97 mln (2 Analysts)
FY Dividend
GBP 0.67
FY Operating Cash Flow
GBP 36 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the multiline utilities peer group is "buy."

Wall Street's median 12-month price target for Yu Group PLC is GBp2,388.50, about 34.2% above its March 16 closing price of GBp1,780.00

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)