CEZ (CEZ) Q1 2026 earnings summary

Executive summary

• Q1 2026 EBITDA was CZK 35.3 billion, down 18% year-over-year, while net income rose 13% to CZK 14.5 billion; adjusted net income was CZK 13.5 billion.

• Operating revenues declined 9% year-over-year to CZK 85 billion, mainly due to lower realized electricity prices.

• Operating cash flow increased 47% to CZK 48.0 billion, mainly due to accounting treatment of state bond investments.

• CapEx more than doubled year-over-year to CZK 15.7–16 billion, focused on nuclear fuel, emission-free energy, and new projects.

• Net debt increased 13% year-over-year to CZK 206.7 billion, with a net debt/EBITDA ratio of 1.6.

Financial highlights

• Generation segment EBITDA dropped 33% to CZK 15.9 billion, mainly due to lower power prices and planned nuclear outages.

• Distribution segment EBITDA rose 12% to CZK 12.7 billion, supported by higher allowed revenues and the Gas Distribution acquisition.

• Sales segment EBITDA declined 25% to CZK 3.6 billion, impacted by lower commodity margins and delays in ESCO contracts.

• Net income benefited from the absence of windfall tax in 2026, adding CZK 8.6 billion.

• Temporary revaluation of derivatives contributed CZK 1.1 billion; proprietary trading added CZK 400 million.

Outlook and guidance

• Upgraded 2026 EBITDA guidance to CZK 107–112 billion and adjusted net income to CZK 30–34 billion, driven by higher power prices and increased coal generation.

• Expectation to produce 15.3 TWh of coal-generated electricity, up from previous 14 TWh estimate.

• Nuclear generation for the full year expected slightly above 30 TWh; renewables to grow due to improved hydro conditions.

• Key forecast assumptions: total electricity supply 44–46 TWh, average realized price EUR 104–108/MWh, and emission allowance purchase price EUR 76–78/t.

• Risks include generating facility availability, realized prices, and commodity trading outcomes.