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 and driving up energy and raw material costs.

• Revenue for Q1 2026 was PLN 3,700m, down 3.2% year-over-year, with a net loss of PLN 211m, but EBITDA improved to PLN 317m (margin 8.6%).

• The company responded with dynamic operational adjustments, forming teams to monitor production efficiency and profitability daily, 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, with a rescue loan and creditor agreements.

Financial highlights

• Q1 2026 revenue: PLN 3,700m (down 3.2% y/y); EBITDA: PLN 317m (up PLN 325m y/y); EBITDA margin: 8.6%.

• Net loss: PLN 211m (improved from PLN 325m loss y/y); EBIT: PLN 89m (vs. PLN -292m y/y).

• Excluding the negative impact of the polymer project, EBITDA would have exceeded PLN 340 million.

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

• Operating cash flow: PLN 1,609m; net cash at period end: PLN 522m.

Outlook and guidance

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

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

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

• Share issue planned by September 13, 2026, as part of ongoing restructuring and negotiations with banks.

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