PGE Polska Grupa Energetyczna (PGE) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was PLN 30,971m, down 1% year-over-year; Q2 2025 revenue was PLN 13,804m, down 4% year-over-year.

• H1 2025 recurring EBITDA rose 57% year-over-year to PLN 7,603m; reported EBITDA was PLN 7,646m, up 49% year-over-year.

• H1 2025 net loss to equity was PLN 6,782m to PLN 7,123m, mainly due to over PLN 9bn in impairments.

• Major one-off items included PLN 9,017m in impairments in H1 2025, primarily affecting coal and conventional assets.

• The group operates mainly in electricity generation, distribution, trading, heat generation, and related services, primarily in Poland.

Financial highlights

• H1 2025 CAPEX totaled PLN 4,914m, up 6% year-over-year, with largest investments in renewables, gas-fired generation, and distribution.

• Net cash from operating activities in H1 2025 was PLN 12,133m, up 99% year-over-year.

• Net debt at June 30, 2025, was negative PLN 992m, reflecting a strong cash position; cash and cash equivalents were PLN 14,130m.

• EPS for H1 2025 was PLN (3.20), compared to PLN 0.90 in H1 2024.

• Total assets as of June 30, 2025 were PLN 99,604m, down from PLN 103,994m at year-end 2024.

Outlook and guidance

• The group’s 2035 strategy focuses on energy transition, climate neutrality by 2050, and significant investments in renewables, grid modernization, and decarbonization.

• Coal assets will remain within the group, with their role gradually reduced to reserve capacity.

• Market conditions remain challenging with declining electricity prices and CO2 costs.

• Forward electricity prices for 2026 are around PLN 420/MWh, indicating continued pressure on margins.

• PLN 18bn planned for district heating modernization by 2035, with PLN 15bn for new installations and PLN 3bn for network acquisitions.