KGHM Polska Miedz (KGH) Q1 2026 earnings summary

Executive summary

• Achieved record-high financial results for Q1 2026, with revenues up 33% to PLN 11,872 million and net profit surging to PLN 3,529 million, driven by high metal prices, strong operational performance, and favorable macroeconomic conditions.

• Adjusted EBITDA more than doubled year-over-year, reaching PLN 5,464 million with a margin of 42%.

• Maintained a stable financial position with low net debt, strong liquidity, and improved financial ratios.

• Advanced key development, sustainability, and energy strategy initiatives, including emissions reduction and R&D in mining automation.

• All segments contributed positively, with significant gains in the core Polish mining business and improved results from international operations.

Financial highlights

• Group revenues rose 33% year-over-year to PLN 11,872 million; net profit increased to PLN 3,529 million, up from PLN 330 million in Q1 2025.

• Adjusted EBITDA more than doubled year-over-year; EBITDA margin improved to 42%, especially on domestic assets.

• C1 cash cost in Poland fell from $3.15 to $1.91 per pound; international assets at $1.02 (Sierra Gorda) and $0.70 (KGHM International).

• Operating costs increased only 1% year-over-year despite higher production and sales.

• Revenues benefited from high copper and silver prices, with processed products making up 52% of copper sales.

Outlook and guidance

• Management expects continued strong performance, supported by high metal prices and ongoing cost optimization, but cautions against simply annualizing Q1 results due to market volatility.

• 2026 CapEx target set at PLN 4–4.1 billion, focusing on mining, metallurgy, and strategic projects.

• Dividend policy remains unchanged, with up to 30% of profit distributed, subject to liquidity and investment needs.

• Strategic goals include maintaining top-three global silver producer status and expanding renewable energy capacity.

• No quantitative financial forecast published for 2026.