Cognor Holding (COG) investor relations material

Executive summary

• Q2 2025 revenue increased 8% YoY to PLN 594.9m, driven by higher delivery volumes despite lower prices.

• Net profit for Q2 2025 was a loss of PLN 11.7m, a deterioration from a profit of PLN 2.2m in Q2 2024, mainly due to higher costs and lower margins.

• Major investments and modernization projects in steel plants and rolling mills were completed or nearing completion in 2024–2025.

• Capacity utilization rose to 71.1% in Q2 2025, with the Kraków mill reaching 79.2% utilization.

• Ongoing challenges from production stoppages and market downturns have impacted profitability and cash flows.

Financial highlights

• Gross profit increased to PLN 35.0m in Q2 2025 from PLN 23.6m in Q2 2024, despite higher conversion costs and lower spreads.

• EBIT dropped to PLN 7.7m from PLN 14.4m year-over-year, impacted by higher administrative and distribution expenses.

• Net loss for H1 2025 was PLN 23,616 thousand, compared to a net loss of PLN 295,039 thousand in H1 2024.

• Net cash from operating activities was PLN 1,885 thousand, up from negative PLN 470 thousand in H1 2024.

• Net debt rose to PLN 833.5m by Q2 2025, with net debt/LTM EBITDA not calculable due to negative LTM EBITDA.

Outlook and guidance

• Macro trends remain unchanged, with expected infrastructure spending boost from the National Recovery Plan.

• Siemianowice LSM mill commissioning underway, with furnace ignition and hot tests planned for mid-September 2025.

• Management expects the completion and ramp-up of the new rolling mill in Siemianowice Śląskie to improve future production and financial results.

• Ongoing negotiations with banks for the release of the second tranche of investment credit are critical for liquidity.

• Conditional waivers for financial covenant breaches have been obtained from key lenders, with further approvals pending.