National Atomic Company Kazatomprom JSC (KZAP) Q2 2025 earnings summary

Executive summary

• Maintained a disciplined, market-focused strategy amid volatile uranium prices, global supply chain constraints, and a value-over-volume approach for long-term sustainability.

• Kazakhstan holds 14% of global uranium resources, with ongoing large-scale exploration and government support to replenish and expand reserves.

• Nuclear energy is increasingly recognized as essential for energy security and net-zero goals, with global support for tripling nuclear output by 2050 and Kazakhstan's commitment.

• Strategic amendments to Subsoil Use Agreements and JV negotiations may impact 2026 production guidance.

• Robust inventory and sales strategy ensure delivery obligations are met and flexibility retained.

Financial highlights

• H1 2025 consolidated revenue: KZT 660 billion, down 6% year-over-year due to lower sales volume; operating profit: KZT 254 million, up 12% year-over-year; net profit: KZT 263 billion, down year-over-year due to prior year one-offs; adjusted net profit down 5%.

• Adjusted EBITDA decreased 4% to KZT 363.1 billion, while attributable EBITDA increased 10% to KZT 302.4 billion.

• C1 cash costs rose 6% to $17.86/lb, all-in sustaining costs up 10% to $30.81/lb, mainly from higher mineral extraction tax and sulfuric acid prices.

• Sulfuric acid costs up 43%, now 15% of uranium production costs.

• Cash and cash equivalents nearly doubled to KZT 583.9 billion as of June 30, 2025.

Outlook and guidance

• 2025 guidance unchanged except for a 500-ton reduction in capped sales volume due to delivery rescheduling; 2026 production may exceed 2025, but final guidance pending JV negotiations and market factors.

• 2026 nominal production level expected to decrease by 10% to 29,697 tU (77 Mlbs), mainly due to JV Budenovskoye adjustments.

• Sulfuric acid supplies for 2026 estimated stable; new plant construction underway, completion expected Q1/Q2 2027.

• CapEx guidance for 2025 reaffirmed; H1 spend typically lower, with most expenditures in H2.

• Kazakhstan's plans for three nuclear plants could create significant future domestic uranium demand.