CEZ (CEZ) Q2 2025 earnings summary

Executive summary

• EBITDA for H1 2025 reached CZK 73.9 billion, up 7% year-over-year, while net income fell 22% to CZK 16.5 billion due to higher depreciation and accelerated coal asset write-downs.

• Operating revenues rose 4% year-over-year to CZK 167.5 billion, with adjusted net income down 21% due to extraordinary items and higher depreciation, especially from the GasNet acquisition.

• Major strategic moves included the sale of an 80% stake in Elektrárna Dukovany II, reducing risk exposure to new nuclear construction, and investments in Rolls-Royce SMR for future modular reactor deployment.

• The Group continued its strategic focus on low-emission energy and climate neutrality by 2040.

• Significant portfolio changes included acquisitions in Germany and Spain and divestitures in Poland.

Financial highlights

• H1 2025 EBITDA was CZK 73.9 billion (+7% year-over-year); net income was CZK 16.5 billion (-22%); operating revenues reached CZK 167.5 billion (+4%).

• CAPEX increased by 11% to CZK 22.8 billion, with major investments in distribution, new energy projects, and acquisitions.

• Net operating cash flow dropped 32% year-over-year, mainly due to working capital changes from commodity price movements.

• Net debt decreased to CZK 181.5 billion, with a net debt/EBITDA ratio of 1.3.

• Gross margin improved to CZK 106.4 billion, with a gross margin ratio of 63.5%.

Outlook and guidance

• 2025 EBITDA guidance raised to CZK 132–137 billion; adjusted net income forecast at CZK 26–30 billion.

• CAPEX guidance for 2025 remains at CZK 70 billion.

• Assumptions include power generation of 43–44 TWh, Czech power prices at EUR 121–125/MWh, and emission allowances at EUR 79–83.

• Windfall tax expected at CZK 29–33 billion for 2025.

• The Group maintains its commitment to reducing coal-based production and achieving full climate neutrality by 2040.