PGE Polska Grupa Energetyczna (PGE) investor relations material

Executive summary

• Q1 2026 sales increased 2% year-over-year to PLN 17,453 million, driven by higher distribution, heat, and gas sales, but recurring EBITDA fell 5% to PLN 4,137 million, with record highs in gas (PLN 179 million, +99% YoY) and heating (PLN 1,122 million, +25% YoY) segments due to cold weather.

• Net profit for Q1 2026 was PLN 2,036 million, down 20% year-over-year, reflecting higher CO2 costs and provisions for onerous contracts.

• Operating cash flow declined sharply by 75% year-over-year, while net cash from investing activities nearly doubled in outflow.

• Renewables portfolio expanded with the acquisition of wind farms (Łada, RWE Offshore Wind Poland), progress on major offshore projects (Baltica 2), and new storage initiatives.

• Customer-centric initiatives advanced, including digitalization, new CRM/billing systems, and a push for paperless agreements (over 70% electronic).

Financial highlights

• Recurring EBITDA decreased 5% YoY to over PLN 4.1 billion, despite higher generation and heating margins.

• Gross profit on sales was PLN 3,749 million, with a gross margin of 21.5%.

• Net debt at end of March was PLN 7.1 billion, with net debt/LTM recurring EBITDA at 0.56x.

• Cash and cash equivalents at quarter-end were PLN 8,453 million, down from PLN 10,809 million at year-end 2025.

• Moody’s and Fitch confirmed long-term ratings at Baa1/BBB with stable outlooks.

Outlook and guidance

• Upgraded outlook for gas energy segment from stable to growing, expecting higher margins.

• Strategy review underway, with an update planned for Q3 2026 to reflect regulatory and market changes, especially in ETS and gas assumptions.

• Forward electricity prices for 2026 remain stable at around PLN 430–440/MWh.

• The Group expects to continue as a going concern for at least 12 months, supported by positive operating cash flows and access to external financing.

• Conservative approach to full-year EBITDA guidance, citing market and geopolitical uncertainties.