Jastrzebska Spólka Weglowa (JSW) Q2 2025 earnings summary

Executive summary

• H1 2025 saw a significant year-over-year decline in revenue and profitability, with net loss and EBITDA both deteriorating compared to H1 2024, though Q2 2025 showed sequential improvement.

• Coal production in Q2 2025 reached 3.34 million tons, up 16.7% over Q1, with coking coal extraction increasing and steam coal reduced.

• Strategic transformation initiatives, including mining efficiency projects and procurement/CapEx optimization, are underway to improve productivity and financial stability.

• The company faced challenging market conditions, with lower global coking coal and coke prices and production disruptions due to mine incidents.

• Net loss for H1 2025 was PLN 1,798.0 million, a substantial improvement from the net loss of PLN 5,349.9 million in H1 2024.

Financial highlights

• H1 2025 sales revenues were PLN 4,714.8 million, down 23.7% from H1 2024; gross loss on sales was PLN 1,060.9 million.

• EBITDA (net of non-recurring events) for H1 2025 was PLN 2,277.2 million, down 8.5% sequentially and 6.6% year-over-year.

• Net loss for Q2 2025 was PLN 712.0 million, an improvement from PLN 1,363.1 million in Q1 2025.

• Cash and cash equivalents at June 30, 2025, were PLN 629.4 million, down from PLN 1,095.1 million at year-end 2024.

• Proceeds from redemption of investment certificates in H1 2025 totaled PLN 2,670.1 million, supporting liquidity.

Outlook and guidance

• Management expects 2025 production above 13 million tons, despite force majeure events impacting volumes.

• Strategic transformation plan targets a run rate of 15 million tons in 2026; business plan for 2026 is being finalized.

• Liquidity is projected to be maintained until September 2026 if planned measures are implemented; otherwise, liquidity could be lost as early as March 2026.

• The company’s going concern assumption is based on the implementation of a Strategic Transformation Plan and liquidity-supporting measures, including cost reductions, capital expenditure cuts, and potential refunds of windfall tax.