Grupa Azoty (ATT) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by significant disruptions due to the Persian Gulf conflict and Hormuz Strait blockage, impacting fertilizer and chemical markets globally, but profitability improved sharply with EBITDA rising to PLN 316.5 million from negative PLN 8.1 million in Q1 2025.

• Revenue was PLN 3.7 billion, nearly flat or down 3.2% year-over-year, with net loss narrowing to PLN 210.6 million from PLN 325 million.

• The Agro segment was the main earnings driver, while Chemicals and Plastics showed mixed results.

• The company responded with dynamic operational adjustments, including daily monitoring of production efficiency and profitability, and launched internal transformation projects for group-wide synergies and energy cost audits.

• Engaged in high-level negotiations with the Polish Ministry of Agriculture and the European Commission, contributing to the EU Fertilizer Action Plan linking agricultural policy with industrial competitiveness.

Financial highlights

• Q1 2026 revenues were PLN 3.7 billion, nearly flat or down 3.2% year-over-year, but EBITDA rose to PLN 316.5 million (8.6% margin), up from negative PLN 8.1 million in Q1 2025, mainly due to lower gas prices and cost reductions.

• Excluding the negative impact of the polymer project (GA Polyolefins), adjusted EBITDA reached PLN 341 million.

• One-off positive impact of PLN 97 million from CO2 certificate reserve revaluation; this is not expected to recur.

• Net cash from operating activities was PLN 1,978 million, with cash and cash equivalents at PLN 522 million at period end.

• Cost optimization, especially in sales logistics, contributed to improved margins.

Outlook and guidance

• Positive trends in fertilizer and sulfur markets expected to persist into Q2 2026, driven by export restrictions and reduced competition, but volatility in raw material and energy prices remains due to geopolitical risks.

• Polymer project sale under preliminary agreement, with finalization expected in Q3 or Q4 2026, anticipated to neutralize ongoing losses.

• Share issue planned by September 2026 to raise PLN 500–600 million as part of ongoing restructuring and negotiations with banks.

• Implementation of the AZOTY BUSINESS Programme and 2030 Strategy aims for annual revenue of PLN 17–18 billion and EBITDA of PLN 1.9–2.0 billion by 2030.

• CO2 certificate provisions expected to negatively impact Q2 EBITDA due to market volatility.