KGHM Polska Miedz (KGH) Q3 2025 earnings summary

Executive summary

• Group revenues for the first nine months of 2025 decreased by 1% year-over-year to PLN 25,871 million, with adjusted EBITDA up 16% to PLN 7,203 million, and net profit down 23% to PLN 1,013 million, mainly due to exchange differences despite higher EBITDA and joint venture results.

• Adjusted EBITDA growth was driven by strong performance in Sierra Gorda S.C.M., with the Group maintaining full operational capacity and exceeding budget targets through optimization and cost discipline.

• KGHM Polska Miedź S.A. saw a 1% decline in revenues, a 5% increase in adjusted EBITDA, but a 62% drop in net profit, impacted by lower exchange differences and fair value changes.

• Maintenance at Głogów Smelter reduced electrolytic copper output by 20,000 tons, but overall production remained within or above budget.

• The Group advanced strategic projects and saw no material negative impact from global risks.

Financial highlights

• Adjusted EBITDA for the Group rose 16% year-over-year to PLN 7,203 million, mainly driven by Sierra Gorda S.C.M., with KGHM Polska Miedź S.A. and KGHM INTERNATIONAL LTD. also contributing.

• Group revenue decreased by 1% year-over-year, and net profit declined 23% to PLN 1,013 million.

• Operating costs fell by 1%, while expenses by nature increased 4% due to higher minerals extraction tax and labor costs.

• C1 unit cost for the Group fell 6% year-over-year, with significant reductions at KGHM INTERNATIONAL LTD. and Sierra Gorda S.C.M.; C1 cost for KGHM Polska Miedź S.A. rose 2%.

• Net debt/adjusted EBITDA remained low at 0.8, indicating strong liquidity.

Outlook and guidance

• The Group continues to monitor global economic and geopolitical risks but has not observed material negative impacts on production, sales, or supply chains.

• Q4 is expected to focus on optimizing sales and earnings, maximizing product profitability, and adapting to market conditions.

• Ongoing feasibility studies for Sierra Gorda expansion, with investment decisions expected by early next year.

• The company is reviewing and updating its long-term strategy to adapt to changing industry conditions.

• The company continues to invest in energy security, renewable energy, and decarbonization, aiming for at least 220 MW of internal power generation capacity by 2030.