Grupa Kety (KTY) Q1 2026 earnings summary

Executive summary

• Achieved strong financial results in Q1 2026 despite challenging macroeconomic and sector conditions, with notable improvements in EBITDA and net profit year-over-year.

• Revenue increased to PLN 1,374 million in Q1 2026, up 1.5% year-over-year, with net profit rising to PLN 145 million, a 20% increase from Q1 2025.

• Over 50% of revenue and EBITDA generated by segments focused on advanced products for the construction industry.

• High production capacity utilization (~90%) was maintained across most segments despite weak economic conditions and geopolitical uncertainties.

• Construction began on a new BOPP film production hall in the Flexible Packaging Segment, with commissioning planned for mid-2028.

Financial highlights

• Sales reached PLN 1,374m (+2% y/y), EBITDA PLN 257m (+13% y/y), and net profit PLN 145m (+20% y/y).

• EBITDA margin improved to 18.7% from 16.8% and operating margin to 14.3% from 12.6% y/y.

• Operating profit (EBIT) reached PLN 196 million, up from PLN 170 million year-over-year.

• Net cash from operating activities was PLN 233 million, with total net cash flows positive at PLN 18 million.

• Earnings per share increased to PLN 14.72 (basic) from PLN 12.35 year-over-year.

Outlook and guidance

• No significant changes expected in the economic environment; continued market fluctuations anticipated.

• Management sustains the 2026 forecast, expecting stable or slightly increased order levels in key segments and a seasonal boost in Sun-shading Systems in Q2.

• Net debt is projected to decrease by about PLN 120 million in Q2 2026, with debt servicing costs expected to fall.

• Raw material price volatility and FX fluctuations remain key risks, but hedging strategies are in place.

• Dividend recommendation of PLN 49.05 per share, representing 85% of consolidated net profit.