CEZ, a. s.

Operating revenue was 5% lower year over year. EBITDA declined 20% to 59 billion Czech crowns. Net income increased 10% from 16.5 billion to 18.1 billion Czech crowns, mainly because the company is no longer paying windfall profit tax. Operating cash flow was 26 billion Czech crowns higher, up 55%, capex was 30% higher, and net debt was about 9% higher to close to 200 billion Czech crowns. For the full year, CEZ raised EBITDA guidance to 109-114 billion Czech crowns from 107-112 billion and adjusted net income guidance to 31-35 billion from 30-34 billion. Management also said the Czech power price assumption is 106-110 per megawatt hour, with carbon credits assumed at 77-79 euros per ton.

The lead executives framed the quarter as one where lower power prices hurt generation and trading, but stronger distribution and better tax treatment supported earnings. They spent significant time on CEZ Energy, describing it as a value-maximization and complexity-reduction step designed to separate businesses and potentially open the company to investors who would not buy the current CEZ mix. Their tone was constructive and confident, but still cautious on details, repeatedly saying that capital structure, debt transfer, and perimeter decisions are still being analyzed.

Martin Novak highlighted the main financial drivers: EBITDA was down 20% to 59 billion Czech crowns, while net income rose to 18.1 billion Czech crowns because income tax dropped from about 23.1 billion Czech crowns to 5.5 billion as the windfall profit tax ended. He said operating cash flow was 26 billion Czech crowns higher and capex was up 30%, while net debt approached 200 billion Czech crowns. He also said the company raised full-year EBITDA and adjusted net income guidance by 2 billion Czech crowns each, citing stronger distribution EBITDA, higher power prices, and better-than-expected nuclear generation as offsets to weaker commodity trading and some project delays.

Analysts focused on trading losses, possible renewed windfall taxes, the impact of distribution correction factors, the CEZ Energy split and debt transfer, and whether drought could affect nuclear output. Management said most of the trading weakness was an intra-year revaluation of energy contracts, with base trading also slower, but they expect a return toward normal levels. They said windfall taxes are not currently on the table, that distribution correction factors will reverse in 2027, and that drought should not materially affect CEZ because the nuclear plants use cooling towers and are not dependent on river flow.