CEZ (CEZ) Q1 2025 earnings summary

Executive summary

• Operating revenue reached CZK 93.4 billion, up 7% year-on-year, with EBITDA also up 7% to CZK 43.0 billion, but net income declined 6% to CZK 12.8 billion due to higher depreciation and amortization, mainly from GasNet consolidation and coal asset depreciation.

• Major positive EBITDA drivers included the consolidation of GasNet, improved distribution and sales segments, and lower purchase prices.

• Sale of 80% stake in Elektrárna Dukovany II to the Czech government for CZK 3.6 billion, removing related liabilities and shifting to equity method consolidation.

• Board proposed a dividend of CZK 47 per share, representing an 80% payout ratio of adjusted net income, to be voted on June 23, 2025.

• Major portfolio changes included the acquisition of INC Innovative Netzconzepte GmbH and the sale of Polish subsidiaries and a 15% stake in Veolia Energie ČR.

Financial highlights

• EBITDA increased by CZK 5.5 billion year-on-year, mainly due to GasNet consolidation and improved distribution and sales.

• Adjusted net income fell 6% year-on-year to CZK 12.7 billion, reflecting extraordinary effects and higher non-cash charges.

• Operating cash flow dropped 19% to CZK 32.7 billion, mainly due to a prior year working capital benefit from lower commodity prices.

• CapEx decreased 6% to CZK 6.9 billion, with lower investments in generation and renewables, offset by GasNet consolidation.

• Net debt increased to CZK 181.7 billion, with net debt/EBITDA at 1.3x as of March 31, 2025.

Outlook and guidance

• 2025 EBITDA guidance is CZK 127–132 billion, with adjusted net income expected at CZK 25–29 billion, reflecting lower realized electricity prices, full-year GasNet consolidation, and higher nuclear availability.

• Full-year nuclear generation expected to rise to 31.6 TWh due to shorter outages; renewables flat at 3.6 TWh.

• Energy services revenue expected to grow 7% for the full year.

• Key forecast assumptions: Czech generation supply 43–45 TWh, average realized electricity price EUR 120–125/MWh, emission allowance price EUR 79–83/t, and windfall tax CZK 27–31 billion.

• The company continues to focus on its "VISION 2030 – Clean Energy of Tomorrow" strategy, targeting a low-emission portfolio and climate neutrality by 2040.