CEZ's 2025 results meet expectations, outlook weaker - analysts

Prague, March 12 (CTK) - The 2025 financial performance of energy group CEZ met expectations, confirming the firm's stable financial condition, but this year's outlook is weaker than expected, mainly due to lower revenues from declining electricity prices, analysts told CTK.

Developments in the Middle East could also affect results this year, according to analysts.

CEZ saw its net profit fall by CZK1.7bn, or 5.8 percent, year-on-year to CZK27.4bn last year, mainly due to higher depreciation, with operating profit (EBITDA), adjusted net profit, and operating revenues also declining, according to data the company made public today. According to its predictions, EBITDA should fall to between CZK103bn and CZK108bn this year, and adjusted net profit, which reached CZK28.1bn last year, should be between CZK27bn and CZK31bn.

Despite the decline, analysts said CEZ's financial performance met the company's current expectations. "EBITDA at the upper end of the expected range, together with net profit exceeding management's forecast, confirmed the company's solid condition," said XTB analyst Tomas Cverna.

Fio Bank analyst Jan Raska assessed the results similarly. "They were almost in line with both our expectations and the market consensus," he noted.

However, the company's outlook for this year, presented today, falls short of expectations, according to analysts. For example, J&T Banka analyst Milan Lavicka expected operating profit of around CZK115bn and adjusted net profit of around CZK40bn.

In addition to the expected decline in production due to lower realised electricity prices, Lavicka said was also surprised by lower expected profits from distribution and sales.

According to Cverna, factors related to events in the Middle East may also affect the group's outlook.

Overall, analysts view CEZ's financial report published today rather negatively, precisely because of the weaker outlook. "We expect a negative market reaction," added Lavicka.

Analysts expect dividends for shareholders to be at the upper limit of the company's current dividend policy, which anticipates a payout of 60 to 80 percent of adjusted net profit. In this case, it would be CZK42 per share.

However, the board of directors will probably present its proposal later, and the final decision will be made by the company's general meeting. Last year, the company paid a dividend of CZK47 per share, totalling CZK25.3bn.

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