CEZ (CEZ) Q1 2025 earnings summary

Executive summary

• Operating revenue for Q1 2025 reached CZK 93.4 billion, up 7% year-on-year, with EBITDA rising 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 accelerated coal asset depreciation.

• CapEx was nearly CZK 7 billion, down 6% year-on-year, with lower investments in generation and renewables, offset by GasNet consolidation.

• Major positive EBITDA drivers included GasNet consolidation, distribution grid performance, and sales segment recovery.

• Sale of 80% stake in Elektrárna Dukovany II to the Czech government for CZK 3.6 billion, removing related liabilities and retaining a 20% stake.

• Dividend proposal of CZK 47 per share, representing 80% of adjusted net income, to be voted on June 23, 2025.

Financial highlights

• Negative EBITDA impact from declining power prices (CZK 5.5 billion), offset by positive contributions from distribution (CZK 1.5 billion), higher allowed revenue (CZK 800 million), correction factors (CZK 600 million), and GasNet (CZK 4.3 billion).

• Sales segment contributed CZK 2.2 billion due to lower purchase prices and market stabilization.

• Depreciation and amortization increased 66% to CZK 5.8 billion, driven by accelerated coal asset depreciation and GasNet inclusion.

• Profit of CZK 1 billion from sale of Polish power plants.

• 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 raised to CZK 127–132 billion; net income guidance unchanged at CZK 25–29 billion, reflecting lower realized electricity prices, ancillary revenues, and windfall tax, but full-year GasNet consolidation and higher nuclear availability.

• Main risk is power plant utilization; windfall tax remains in effect for 2025.

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

• Hedging: 2026 two-thirds sold, 2027 one-third, 2028 at 12%, 2029 just started; average achieved price EUR 94–70.

• 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.