Although industrial production weakened mom in May, the overall outlook remains favourable. We continue to expect the cyclical recovery in Czech industry to remain intact this year. Construction output also fell mom in May. Residential construction recorded a significant decline, whilst civil engineering saw an increase in output compared with April. However, the number of housing starts confirms the overall solid performance of residential construction. The increase in the foreign trade balance in May reflected continued strong export performance, whilst import growth slowed noticeably and virtually stagnated in May.

Although industrial production weakened mom in May, the overall outlook remains favourable. We continue to expect the cyclical recovery in Czech industry to remain intact this year. Construction output also fell mom in May. Residential construction recorded a significant decline, whilst civil engineering saw an increase in output compared with April. However, the number of housing starts confirms the overall solid performance of residential construction. The increase in the foreign trade balance in May reflected continued strong export performance, whilst import growth slowed noticeably and virtually stagnated in May.

Industrial production surprised to the downside in May, falling by 0.4% mom. In yoy terms, it was down by 1%, while the market consensus had expected a rise of 1.2%. Our estimate was more downbeat, as we had expected a decline of -1.7% yoy, anticipating a mom decline of 0.9%. The yoy decline in industrial production is largely attributable to the differing number of working days; after adjusting for this effect, output was up 2.0% yoy in May. Domestic industry has thus managed to increase output yoy virtually every month since February 2025. The weaker result in May follows strong growth momentum in the previous two months and does not signal a significant weakening ahead. Despite higher energy prices, we believe that the cyclical recovery of Czech industry should instead remain intact for the rest of the year.

Foreign trade continues to be driven by automotive exports

The foreign trade balance in May showed a surplus of CZK9.9bn, exceeding the market consensus (CZK3.2bn). Trade in motor vehicles remains the dominant driver of the trade balance, with a surplus of CZK54.5bn (+CZK0.8bn yoy). The second-largest surplus was recorded in machinery and equipment (CZK15bn). This mainly offset the shortfalls in the crude oil and natural gas, base metals and chemicals sectors.

Solid figures for residential construction in May

Construction output recorded a slower yoy growth in May. Whilst yoy growth in construction output stood at 7.7% in April, it was down to 4.4% in May. Both categories contributed positively to yoy growth: building construction (+3.3%) and civil engineering (+6.6%). However, based on SA data, the mom growth in total output was not particularly encouraging, with the construction sector recording a 1.1% mom decline in May, similar to April. Whilst civil engineering recorded a slight mom uptick (+0.2%), building construction fell significantly compared with April (-1.8%).

Starting Wednesday, July 1, 2026, Colt shares will trade ex-dividend for fiscal year 2025. The share price typically declines on the first day without dividend rights.

At the Annual General Meeting on Friday, June 26, 2026, the Board of Directors’ proposal to pay a dividend of CZK30 per share was approved.

This dividend corresponds to a payout ratio of 92.6% and offers a gross yield of +3.3%.

Starting Wednesday, July 1, 2026, Colt shares will trade ex-dividend for fiscal year 2025. The share price typically declines on the first day without dividend rights.

At the Annual General Meeting on Friday, June 26, 2026, the Board of Directors’ proposal to pay a dividend of CZK30 per share was approved.

This dividend corresponds to a payout ratio of 92.6% and offers a gross yield of +3.3%.