Earnings call transcript: PGE posts strong Q2 2026 revenue beat as shares fall

PGE Polska Grupa Energetyczna announced a strong second-quarter 2026 revenue of 15.26 billion, exceeding expectations by 17.57%, while the stock fell 2.48% to $13.59 from $13.94. Recurring EBITDA grew 21% year over year to PLN 3.96 billion, and net profit reached approximately PLN 2 billion. The company's diversified portfolio helped mitigate pressure in some areas, with strong electricity prices, higher sales volumes, and better results in gas and heat generation contributing to the positive outcome.

However, the retail business faced tariff margin constraints, affecting results. PGE invested heavily in long-term projects, including offshore wind, battery storage, gas generation, and heat decarbonization, with capital expenditures rising 4% to PLN 2.46 billion. The company's net debt decreased to PLN 1.8 billion, and its economic debt to 12-month recurring EBITDA stood at 1.06.

Generation increased by 2 terawatt-hours, or 18% year over year, while national electricity consumption rose by 3.7%. Despite the strong performance, investors focused on regulatory risk, coal exposure, and the company's uncertain longer-term outlook. PGE's market position is unique, as it owns both coal and lignite assets, with lignite being the most vulnerable source economically. The company plans to present an updated strategy to shareholders in October 2026.