PGE Polska Grupa Energetyczna (PGE) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was PLN 30,971m, down 1% year-over-year; Q2 2025 revenue was PLN 13,804m, down 4% year-over-year.

• H1 2025 recurring EBITDA rose 57% year-over-year to PLN 7,603m; Q2 2025 recurring EBITDA up 42% to PLN 3,269m.

• H1 2025 net profit to equity was a loss of PLN 6,782m, mainly due to significant impairments; excluding impairments, net profit was PLN -606m.

• Major one-off items included PLN 9,017m in impairments in H1 2025, impacting EBIT and net profit.

• The report covers the 6 months ended June 30, 2025, prepared in accordance with EU IFRS, with all figures in PLN million.

Financial highlights

• H1 2025 reported EBITDA was PLN 7,646m, up 49% year-over-year; Q2 2025 reported EBITDA was PLN 3,336m, up 28%.

• H1 2025 CAPEX totaled PLN 4,914m, up 6% year-over-year, with significant investments in renewables, gas-fired generation, and distribution.

• Net cash from operating activities in H1 2025 was PLN 12,133m, up 99% year-over-year.

• Cash and cash equivalents increased to PLN 14,130m as of June 30, 2025, from PLN 4,363m at year-end 2024.

• Net debt at June 30, 2025, was negative PLN 992m, reflecting a strong cash position.

Outlook and guidance

• Market conditions remain challenging with declining electricity prices and CO2 costs.

• The group’s 2035 strategy focuses on energy transition, climate neutrality by 2050, and significant investments in renewables, grid modernization, and decarbonization.

• Forward electricity prices for 2026 are around PLN 420/MWh, indicating continued pressure on margins.

• Coal assets will remain within the group, with their role gradually reduced to reserve capacity.

• PLN 18bn planned for district heating modernization by 2035, with PLN 15bn for new installations and PLN 3bn for network acquisitions.