PGE (PGE) · Q2 2026 results and valuation

At −5.8% growth a year (3-year revenue growth), the model's fair value is 2.26 zł a share — the stock trades 592% above it. Today's price assumes 14.4% growth a year.

1. Figure

   Distribution results increased primarily due to a 12% increase in distributed electricity volume compared to the previous year.

   Source quote

   “The higher result in distribution is primarily the result of a 12% increase in the volume of distributed electricity compared to last year.”

2. Figure

   Higher natural gas consumption of 2.1 PJ for increased electricity production added 135 million PLN to costs, partially offset by a 5.6 PLN/GJ lower price which reduced costs by 86 million PLN.

   Source quote

   “Higher natural gas consumption costs due to higher consumption of this fuel by 2.1 PJ resulting from higher electricity production by 0.3 TWh, which led to a cost increase of 135 million PLN, while a lower price of 5.6 PLN/GJ had an impact on reducing costs by 86 million PLN.”

3. Figure

   The average realized wholesale electricity sales price at PGE's power plants reached 510 PLN/MWh in the first half of 2026.

   Source quote

   “The average realized wholesale electricity sales price in the PGE Group in the first half of 2026 amounted to 510 PLN/MWh.”

4. Key theme

   Personnel costs increased due to higher employment in offshore and renewable energy sectors and signed wage agreements.

   Source quote

   “The increase in personnel costs is primarily a result of higher employment due to the development of the Offshore Wind and Renewable Energy sectors and signed wage agreements.”

5. Figure

   Revenue from high-efficiency cogeneration support increased due to the commissioning of EC Czechnica and gas engines in EC Bydgoszcz during 2025.

   Source quote

   “Higher revenues from support for high-efficiency cogeneration due to the commissioning of EC Czechnica and gas engines in EC Bydgoszcz during 2025.”

2 more

1. Figure

   The Group maintains active IRS transactions hedging interest rate risks for loans and bonds with a total original nominal value of 3,900 million PLN.

   Source quote

   “The Group holds active IRS transactions hedging interest rate risk on drawn loans and issued bonds, the total initial nominal value of which amounted to 3,900 million PLN (2,500 million PLN for loans and 1,400 million PLN for bonds).”

2. Key theme

   New requirements for BAT AELs, BAT AEPLs, and an EMS may lead to increased operating and investment costs due to necessary facility adjustments and expanded monitoring.

   Source quote

   “The introduction of the requirement to determine the most stringent achievable emission limit values (BAT AELs), binding associated environmental performance levels (BAT AEPL), and a mandatory environmental management system (EMS) may result in the need to adapt operated installations, an expansion of the scope of monitoring environmental parameters, and an increase in operating and investment costs.”

Typical for a company report — about as upbeat as in Q2 2025. Periodic reports carry legally required risk wording, so their tone moves little and is a weak signal.

Sentences that drove the tone

“Accelerating permitting procedures for energy projects and enabling the optimal utilization of existing energy infrastructure, as well as accelerating the development of energy infrastructure in Europe.”

“Environmental risk – risk associated with obligations arising from regulations specifying environmental requirements that energy installations must meet and rules for the use of the natural environment, including uncertainty regarding...”

“ESG improving resilience to risks increasing sustainable revenues”