PGEO - More Than Doubling the Heat

KBVS Update
Thursday, 6 August 2026

PGEO – More Than Doubling the Heat
(Maintain BUY; Upgrade TP to IDR1,400)

■  In 1H26, PGEO delivered a strong performance, with revenue rising +14.7% YoY to USD235 mn (53.9%/52% of ours/cons' 26F estimates) on the back of +13.6% YoY production growth to 2,745 GWh, and net profit up +15.5% YoY to USD79.6 mn (51.3%/51.4%), aided by a forex turnaround.

■  In 2Q26, however, the spike in expenses affected PGEO's profitability, pushing down the company's EBITDA and net profit for the quarter to USD87.9 mn (-8.5% QoQ) and USD35.7 mn (-18.7% QoQ).

■ While 2Q26 profitability softened, we remain optimistic about the company's prospects through the rest of the year and beyond, thanks to its visible multi-year expansion pipeline and the prospect of rising demand for renewable energy.

■ Maintain BUY with an upgraded DCF-based TP of IDR1,400/share, implying 38.6% upside and 9.6x FY26F EV/EBITDA.

Regards,
Adolf R B Setiadi – KBVS Research Team