CEZ shares drop after Q2 profit misses analyst forecasts

Shares of CEZ Group, the Czech Republic’s largest electricity producer, declined on Thursday after the company reported second-quarter results that fell short of analyst estimates.

CEZ said net profit for the three months ended June 30 totaled 12.3 billion Czech koruna ($546 million), below the 13.5 billion koruna forecasted by analysts polled by Reuters. Revenue for the quarter rose 12% year-over-year to 85.2 billion koruna, driven by higher electricity prices and increased sales volumes.

The company attributed the profit shortfall to higher costs, including maintenance expenses and regulatory levies, which offset gains from improved operational performance. Operating profit before interest and taxes (EBIT) came in at 18.7 billion koruna, slightly below expectations of 19.2 billion koruna.

CEZ maintained its full-year guidance, reaffirming a net profit target of 45-50 billion koruna, citing stable demand and ongoing cost management. However, the weaker-than-expected quarterly performance weighed on investor sentiment, with shares falling as much as 4% in early trading.

Analysts at Erste Group noted that while the results were broadly in line with operational trends, the miss on profitability underscored margin pressures in the European energy sector. The company’s stock has underperformed the broader Czech equity market over the past month, reflecting broader investor caution amid volatile energy prices.

CEZ Group, majority-owned by the Czech state, operates a diversified portfolio of power plants, including nuclear, coal, and renewable energy assets. The company remains a key player in Central Europe’s energy transition, though rising input costs and regulatory uncertainty continue to pose challenges.