KGHM Polska Miedz (KGH) Q2 2025 earnings summary

Executive summary

• Group revenues increased 0.4% year-on-year to PLN 17,556 million, with adjusted EBITDA up 16% to PLN 4,208 million, but net profit fell 46% to PLN 580 million, mainly due to adverse exchange differences and higher amortization.

• International assets, especially Sierra Gorda, showed strong production growth and contributed positively to EBITDA.

• Domestic copper production declined 6.9% year-on-year, while Sierra Gorda's copper output rose 19% and molybdenum output increased up to 89%.

• Key strategic achievements included progress in mining infrastructure, environmental initiatives, and energy transition projects.

• Significant events included asset impairment reviews, management changes, and a major copper wire rod contract.

Financial highlights

• Adjusted EBITDA increased 16% year-on-year to PLN 4,208 million, but net profit dropped 46% to PLN 580 million, mainly due to adverse exchange differences.

• KGHM Polska Miedź S.A. revenues fell 1% to PLN 14,860 million, with adjusted EBITDA down 2% and net profit plunging 92% to PLN 113 million.

• Operating costs rose 1% year-on-year to PLN 15,455 million.

• Cash flows were negative, with net cash from operating activities at PLN 1,818 million and high CapEx and increased anode stocks.

• Net debt stood at PLN 5,317 million, with strong liquidity and access to PLN 15,517 million in credit lines.

Outlook and guidance

• Management expects improved production in the second half as maintenance projects conclude.

• Planned 2025 CAPEX is PLN 3,800 million, with H1 2025 execution at PLN 1,512 million, focused on mining, metallurgy, and development projects.

• International assets are expected to maintain stable performance, with ongoing optimization.

• No official production or cost guidance was published.

• The group continues to monitor global economic conditions and adapt its strategy to market and regulatory changes.