CEZ AS ((CZ:CEZ)) has held its Q2 earnings call. Read on for the main highlights of the call.
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The recent earnings call for CEZ AS painted a mixed picture of the company’s financial health and strategic direction. While there was notable growth in EBITDA and advancements in nuclear energy projects, the call also highlighted challenges such as a decline in net income and power prices. The strong performance in the distribution and sales segments, along with the positive impact of acquisitions, helped balance these negative aspects.
EBITDA Growth and Financial Outlook
CEZ Group reported an impressive EBITDA of nearly CZK 74 billion, marking a 7% increase compared to the previous year. This growth has prompted the company to raise its EBITDA target for the year to a range of CZK 132 billion to CZK 137 billion, showcasing confidence in its financial outlook.
GasNet Acquisition Impact
A significant positive impact on CEZ’s financials came from the consolidation of GasNet, which contributed CZK 6.4 billion to the company’s EBITDA in the first half of 2025. This acquisition has been a key driver of the company’s financial performance.
Nuclear Energy Developments
CEZ has made strategic progress in its nuclear energy projects, selling an 80% share in a new nuclear project to the government and securing agreements for new nuclear units with Korean KHN. These developments underscore CEZ’s commitment to expanding its nuclear energy capabilities.
Distribution and Sales Segment Improvement
The distribution segment saw an increase of CZK 3 billion due to higher revenues, while CEZ Prodej delivered CZK 4.5 billion in EBITDA, marking a CZK 3.2 billion increase. These improvements highlight the strength of CEZ’s distribution and sales operations.
Net Income Decline
Despite the positive EBITDA growth, CEZ reported a decline in net income, with adjusted net income at CZK 16.7 billion and net income at CZK 16.5 billion, down by 21% and 22% year-on-year, respectively. This decline poses a challenge for the company moving forward.
Power Price Decline
A decline in power prices negatively impacted CEZ’s financials by CZK 6.4 billion year-on-year. This decrease in power prices is a significant factor affecting the company’s overall performance.
Renewable Energy Output Decrease
CEZ experienced a 17% decrease in renewable energy output due to less favorable natural conditions compared to 2024. This decline highlights the challenges faced in the renewable energy sector.
Forward-Looking Guidance
Looking ahead, CEZ has provided updated guidance with an increased EBITDA target for 2025, now estimated between CZK 132 billion and CZK 137 billion, driven by higher power prices and cost savings. The adjusted net income range has also been revised to CZK 26 billion to CZK 30 billion. The company anticipates significant investments in new nuclear projects and SMR development, while maintaining its CapEx guidance at CZK 70 billion for the year.
In conclusion, CEZ AS’s earnings call reflected a balanced mix of positive growth and strategic progress against the backdrop of some financial challenges. The company’s strong performance in distribution and sales, coupled with strategic acquisitions, provides a solid foundation for future growth, despite the hurdles posed by declining net income and power prices.