CEZ AS (CEZ) Q2 2026 Earnings Report

The call presented a mixed picture: operational and market headwinds (weak wholesale prices, volatile trading revaluations, large EBITDA decline in generation) materially weighed on reported EBITDA, while several positive factors partially offset these negatives — notably a 10% rise in net income aided by removal of the windfall tax, a 55% increase in operating cash flow, strong distribution performance, an upward adjustment to full‑year guidance, and strategic actions (formation of CEZ Energy and targeted M&A) that should improve strategic optionality. However, execution and timing risks remain (project delays, rising net debt, hedging shortfalls, and uncertainty over the scope/timing of the CEZ Energy debt and capital structure).

CEZ raised its 2026 guidance modestly: EBITDA was lifted by CZK 2 billion to CZK 109–114 billion (from CZK 107–112 bn) and adjusted net income to CZK 31–35 billion (from CZK 30–34 bn). The company’s planning assumptions for the Czech Republic are 45–47 TWh of generation, average achieved prices of EUR 106–110/MWh and average carbon purchase prices of EUR 77–79/t; for 2027 CEZ is 76% hedged at an average achieved price of EUR 88/MWh. Operational drivers cited include a full‑year increase in coal generation of +9% and gas generation of +87% (fossil generation up 18% to 18.8 TWh), expected nuclear output ~30.6 TWh and renewables ~3.6 TWh, while H1 results showed operating revenue down 5%, EBITDA at CZK 59 bn (‑20% y/y), net income CZK 18.1 bn (+10% y/y), operating cash flow up CZK 26 bn (+55%), CapEx +30% and net debt ~CZK 200 bn (+~9%).