Cognor Holding (COG) investor relations material

Executive summary

• Q2 and H1 2026 saw significant revenue growth, with H1 revenue at PLN 1,241.2 million, up 9% year-over-year, and a return to profitability as net profit reached PLN 5.7 million compared to a net loss in the prior year.

• Gross profit and EBIT rose sharply, with Q2 gross profit up 79% to PLN 62.66m and EBIT up 307% to PLN 31.16m; H1 operating profit before financing costs was PLN 43.1 million.

• Major capex projects, including a new rolling mill in Siemianowice Śląskie and upgrades in Kraków and Gliwice, were completed, with total capital expenditures exceeding PLN 1.5 billion since 2023.

• Capacity utilization improved, especially at Cracow and Siemianowice mills, following commissioning of new facilities.

• The company remains focused on vertical integration, cost efficiency, and sustainable steelmaking using EAF technology.

Financial highlights

• Q2 2026 revenue reached PLN 649.98m, gross profit was PLN 62.66m, and net profit turned positive at PLN 6.42m; H1 gross profit was PLN 100.0m.

• EBIT increased by 307% to PLN 31.16m in Q2, and H1 basic and diluted EPS were PLN 0.02 versus PLN -0.15 in H1 2025.

• EBITDA margin improved to 7.8%, net profit margin reached 1.0%, and net debt decreased to PLN 697.75m.

• Net cash from operating activities was negative at PLN -55.9 million in H1, reflecting working capital outflows and investment activity.

• Total assets increased to PLN 2,955 million as of June 30, 2026, with equity stable at PLN 1,410 million.

Outlook and guidance

• Q3 2026 is expected to see lower production capacity utilization due to maintenance stoppages and weak demand, with sales volumes and values projected to decrease quarter-over-quarter but remain similar year-over-year.

• Downward price adjustments are anticipated for scrap metal, billets, and finished products.

• Management expects continued improvement in operational results and financial indicators as new investments ramp up production.

• The Group is actively seeking waivers for breached financial covenants and anticipates ongoing cooperation with lenders.

• EU market protection tools, including new safeguard quotas and carbon taxes, are expected to support domestic producers.