Grupa Azoty (ATT) Q1 2026 earnings summary

Executive summary

• Q1 2026 was marked by significant disruptions from the Persian Gulf conflict and Hormuz Strait blockage, impacting fertilizer and chemical markets globally and driving up energy and raw material costs.

• The company responded with dynamic operational adjustments, daily monitoring of production efficiency, 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.

• Major restructuring and sale of Polyolefins to ORLEN S.A. advanced, supported by a rescue loan and creditor agreements.

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

Financial highlights

• Q1 2026 revenue was PLN 3.7 billion, nearly flat or down 3.2% year-over-year, with EBITDA rising to PLN 317 million (margin 8.6%), and adjusted EBITDA (ex-Polyolefins) reaching PLN 341 million.

• Net loss was PLN 211 million, improved from a PLN 325 million loss year-over-year.

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

• EBITDA margin improved to 8.6% from -0.2% year-over-year; adjusted margin (ex-Polyolefins) at 9.2%.

• Operating cash flow was PLN 1,609 million; net cash at period end was PLN 522 million.

Outlook and guidance

• Positive trends in fertilizer and sulfur markets expected to persist into Q2 2026, driven by export restrictions and reduced competition.

• Sale of Polyolefins to ORLEN expected in Q3 or Q4 2026, anticipated to neutralize ongoing losses.

• Share issue planned by September 2026 as part of restructuring and negotiations with banks.

• 2030 strategy targets annual revenue of PLN 17–18 billion and EBITDA of PLN 1.9–2.0 billion, with margin above 10%.

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