The owner of British Gas has paused its plan to buy back shares from shareholders after the company’s full-year profits slumped by almost 39%.

Centrica reported adjusted earnings of £1.42bn for 2025, down from £2.3bn the year before, after a “challenging” year for the business as it undertakes a series of multibillion-pound investments.

British Gas reported lower profits for the year despite modest growth in its customer base after milder weather meant households used less gas and electricity. The supplier’s adjusted profits fell to £309m for the year, from £364m the year before, even as the number of household customers grew by 1% to almost 8 million accounts.

The company’s chief executive, Chris O’Shea, said: “The environment has been challenging, and performance has varied across the business.

“Pausing the buyback enables us to prioritise investment that creates lasting value for shareholders, while continuing to deliver the reliable, affordable energy that households and businesses need to power economic growth through the transition.”

Shares in Centrica fell almost 8% in early trading, making it the top faller on the FTSE 100.

Centrica is making significant investments in the new Sizewell C nuclear plant in Suffolk and last year bought Europe’s largest gas import terminal at Grain LNG for £1.5bn. The company also hopes to invest billions in its gas storage facility at Rough.

Its multibillion-pound spending plans have emerged as profits in its energy retail business have fallen despite growth across its various retail businesses simultaneously for the first time in more than a decade.

The company’s profits for energy trading were also hit by geopolitical volatility, while outages in the UK’s nuclear reactor fleet also eroded earnings for the year.

Profits across the wider retail business were flat on the previous year at £557m because of higher earnings from its energy services and business solutions divisions.