Should I buy Centrica stock in 2025?

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At HelloSafe, our expert has been tracking the performance of Centrica for over three years. Every month, hundreds of thousands of users in the UK trust us to analyse market trends and identify the best investment opportunities. Our analyses are provided for informational purposes only and do not constitute investment advice. In accordance with our ethical charter, we have never been, and will never be, compensated by Centrica.

What is Centrica?

Centrica Stock Price

The price of Centrica stock is falling this week. Centrica currently trades at 158.05p per share, showing a 24-hour move of -0.30p (-0.19%) as the short-term trend remains muted. Market capitalisation stands at £7.69 billion, with a robust average daily volume of 31.36 million shares traded over the past three months. The company’s P/E Ratio is 6.32, supported by a dividend yield of 2.79% and a low beta of 0.63, indicating relative stability. Investors should note these figures to assess potential opportunities and risk in the current market context.

Our full analysis of the Centrica stock

After a rigorous review of Centrica’s latest financial statements, price dynamics, and sector benchmarks, we conducted a cross-comparison using multi-source market data, technical indicators, and competitive landscape intelligence refined by our proprietary risk-adjusted models. Over the past three years, Centrica’s operational realignment and strategic milestones have significantly shaped its outlook within the utilities and energy transformation sector. So, why might Centrica stock once again become a strategic entry point into the UK utilities and clean energy market in 2025?

Recent performance and market context

Centrica stock has demonstrated robust resilience amid shifting energy market conditions, rising 14.53% over the past six months and 14.16% year-on-year to its current value of 158.05p. This performance is particularly significant considering the sector’s challenging macroeconomic environment, including energy price normalisation and global supply disruptions. Notably, Centrica’s recent £20 billion gas supply agreement with Equinor ensures security of supply and long-term revenue stability, reinforcing its standing as a dependable partner to both consumers and the UK government. In addition, Centrica’s market capitalisation at £7.69 billion and its active engagement in landmark projects such as Sizewell C underline a deliberate shift towards both stability and future-facing growth.

The macroeconomic context further favours Centrica: increased UK policy support for clean energy, robust residential and business energy demand, and regulatory enhancements for sustainable solutions make the company’s diversified model especially appealing. Centrica is also well-insulated from supply volatility due to disciplined hedging, vertical integration, and a powerful brand presence through British Gas. These elements enable Centrica to extract value even as legacy competitors struggle to adapt.

Technical analysis

Despite short-term technical signals indicating caution—RSI at 33.31 and MACD negative at -1.15—smart money often interprets such oversold signals as potential early accumulation points. The shares currently trade just above technical support at 157.73p, providing a highly asymmetric risk/reward setting for momentum investors. While moving averages (20/50/100/200 days) signal short-term weakness, this has historically coincided with strong institutional flows looking to re-enter at discounted levels.

Key support at the Fibonacci pivot (157.73p) would likely trigger renewed buying if held; equally, technical resistance at the 52-week high (168.90p) offers a tangible target for short- to medium-term price appreciation. With a beta of 0.63, Centrica demonstrates low correlation with market volatility—an often critical trait sought by investors seeking defensive yet upwardly mobile positions. The technical structure suggests that patient capital is positioning ahead of macro and corporate catalysts, validating a constructive view even amidst temporary drawdowns.

Fundamental analysis

Fundamentally, Centrica’s operational momentum remains formidable. Revenue for 2024 stands at £19.91 billion, with adjusted EBITDA of £2.3 billion—a transition to more sustainable earnings after the extreme volatility of 2022–2023. Net profit of £1.33 billion, combined with free cash flow of £1 billion and a manageable net cash position (£2.9 billion), signal durable financial health and ample flexibility for continued investment and shareholder returns.

Valuation-wise, Centrica’s P/E ratio of 6.32 is notably compelling relative to both historic averages and sector comparables, suggesting undervaluation and an attractive entry point for long-term holders. The dividend yield of 2.79% (4.5p per share) further elevates the appeal, particularly as the company is committed to a progressive policy, supporting investor appetite for stable income. Centrica’s integrated approach—combining power generation, trading, upstream assets, and downstream consumer relationships—enables it to extract margin at every phase of the value chain. Its iconic British Gas brand and large installed base provide robust recurring revenue and strategic market share advantages.

Volume and liquidity

Centrica maintains consistently high liquidity, with average daily turnover surpassing 31 million shares over the past three months. This depth reflects strong interest from both institutional and retail investors and enables flexible position-sizing without material execution risk. Such liquidity supports fair price discovery, rapid adjustment to newsflow, and dynamic valuation through market cycles.

A float dominated by blue-chip and diversified investors means reduced vulnerability to speculative swings, while high trading volumes ahead of noted corporate actions (particularly the Sizewell C stake and Norwegian supply deal) indicate ongoing market confidence and the ability to sustain upwards price action in response to positive news.

Catalysts and positive outlook

Looking forward, Centrica’s pipeline is filled with powerful upside catalysts. The anticipated participation in the Sizewell C nuclear project, with a 15% stake expected to be confirmed in July 2025, marks a pivotal pivot towards sustainable, zero-carbon generation and future-proof business lines. Concurrently, the multi-billion-pound gas import deal with Equinor ensures Centrica can address a substantial 9% of UK energy needs, underlining its critical infrastructure status and guaranteeing energy revenues for the decade ahead.

• Projected run-rate EBITDA of £1.6 billion by 2028, with a clear path to sustainable growth
• Expansion of business solutions and energy trading operations, capturing value in dynamic market conditions
• Progressive ESG commitments, including SBTi-validated goals, ensuring eligibility for a growing pool of responsible capital

The UK’s regulatory trajectory, which strongly favours decarbonisation and energy independence, amplifies Centrica’s relevance and positions it at the intersection of security and innovation. Recent history shows that well-placed legacy players with the foresight to invest in future technologies—nuclear, LNG, renewables—are rewarded by a re-rating as market realities shift.

Investment strategies

Centrica offers compelling cases for both short- and long-term investors.

• Short- to medium-term: The current trade zone near technical support and the anticipation of July’s Sizewell C decision create a classic “buy ahead of the event” strategy, especially for those seeking price catalysts.
• Medium- to long-term: For growth and income investors, the company’s discounted P/E, robust cash flow, progressive dividend policy, and clear strategic vision for energy transition lay the foundation for a structural re-rating.
• Value and dividend focus: Strong free cash flow, a prudent balance sheet, and a sustainable dividend underline defensive qualities rarely found at such appealing entry multiples.
• Sector rotation: As global investors diversify into ESG and “real economy” leaders within utilities, Centrica’s blend of established infrastructure and green growth potential ensures it remains core to a well-balanced portfolio.

Current market dynamics, disciplined cost controls, and strategic investments converge to make Centrica particularly well-situated for those looking to capitalise on the next phase of utility sector expansion.

Is it the right time to buy Centrica?

In summary, Centrica stands out for its appealing blend of stability and upside: robust revenue streams, sector-leading profitability, and attractive valuation multiples converge with clear strategic vision and upcoming catalysts. The disciplined execution of new growth drivers, resilient cash generation, and commitment to shareholder returns all suggest that the stock may be entering a new bullish phase, with considerable room for price appreciation as short-term headwinds subside.

With exceptional liquidity, defensive characteristics, and a pivotal presence in the UK’s future energy supply chain, Centrica seems to represent an excellent opportunity for investors seeking both growth and resilience. The convergence of earnings momentum, strategic expansion, and discounted valuation create a highly favourable context for renewed interest. For those prepared for the energy sector’s cyclical rhythms, the coming months may offer precisely the inflection point that rewards a forward-looking, disciplined approach to this standout British utility stock.

How to Buy Centrica Stock in the UK

Buying Centrica stock online is simple, secure, and accessible for all UK investors through a regulated broker. You can acquire Centrica shares directly (spot buying, owning real shares), or trade them using a leveraged product known as a CFD (contract for difference). Each method serves a different objective, from long-term holding to active trading. For help selecting the best UK platform, you’ll find a broker comparison further down this page.

Spot buying

When you buy Centrica stock for cash, you own real shares listed on the London Stock Exchange. This is a straightforward investment approach, ideal for long-term holders, and typical fees include a fixed commission per order (usually £5 to £10 with major UK brokers).

Gain scenario for Centrica shares

If the Centrica share price is 158p (GBP), you can buy around 630 shares with a £1,000 stake, including a typical £5 brokerage fee.

If the share price rises by 10%, your shares are now worth £1,100.

Result: +£100 gross gain, or +10% on your investment.

Trading via CFD

CFD trading lets you speculate on Centrica’s share price without owning the underlying stock, often using leverage. Fees typically include a spread (the bid/offer difference) and an overnight financing cost if you hold positions for more than one day.

CFD Trade Example: Gain Scenario

You open a CFD position on Centrica shares with 5x leverage and a £1,000 deposit.

This gives you market exposure of £5,000.

✔️ Gain scenario:

If the stock rises by 8%, your position gains 8% × 5 = 40%.

Result: +£400 gain, on an initial £1,000 (excluding fees).

Final advice

Before investing, carefully compare the fees, features, and service levels of different UK brokers—see our full comparison further down the page. The most suitable method for buying Centrica depends on your investment horizon, risk appetite, and financial goals; always choose what aligns with your strategy and comfort.

Our 7 tips for buying Centrica stock

The latest news about Centrica

Centrica secures a £20 billion Norwegian gas deal, reinforcing UK energy security until 2035. In June 2025, Centrica finalised a groundbreaking agreement with Equinor for long-term gas imports, covering 9% of the UK’s annual demand and supporting the country’s energy transition and supply resilience. This strategic partnership is considered one of the most significant energy supply commitments in recent years, bolstering Centrica’s leadership in the domestic market.

Centrica is progressing towards a 15% stake in the Sizewell C nuclear project, with a final investment decision imminent. Following years of negotiation, Centrica is set to participate directly in the development of one of the UK’s key future energy infrastructures by investing in Sizewell C. The decision, expected by July 2025, is a major commitment supporting national decarbonisation goals and long-term shareholder value via clean energy investments.

The stock maintains strong liquidity, with average daily volumes exceeding 31 million shares on the LSE. Recent trading data highlights sustained market interest in Centrica, reflecting confidence in its operational stability and strategic outlook. This robust liquidity enhances price discovery, making Centrica attractive to both institutional and retail investors in the UK.

Solid financial fundamentals have been reaffirmed, with £1.33 billion net income and ongoing positive cash flow. Centrica’s recent annual figures show resilience in a normalised energy environment, with a return to steady profitability and significant free cash flow generation. This strong financial base supports both ongoing growth investments and a progressive dividend policy for shareholders.

Analyst consensus remains positive, with a target price indicating 30% potential upside from current levels. Leading financial institutions continue to express confidence in Centrica’s outlook, highlighting its strategic positioning and growth potential in the evolving UK energy sector. This positive sentiment is underpinned by robust recent results and well-executed market initiatives.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.