KGHM Polska Miedz (KGH) Q2 2026 earnings summary

Executive summary

• Revenues for H1 2026 reached PLN 24,711 million, up 41% year-over-year, with net profit at PLN 5,579 million, a nearly tenfold increase from H1 2025, driven by higher copper, silver, and gold prices, favorable macroeconomic conditions, and cost discipline.

• Adjusted EBITDA surged 89% year-over-year to PLN 9,198 million, with EBITDA margin at 34% and net profit up from PLN 580 million in H1 2025.

• Debt decreased, cash flows strengthened, and equity increased to PLN 39,814 million as of June 2026, supported by cost optimization and operational efficiencies.

• Investments accelerated in domestic and foreign assets, including renewable energy projects, mining expansion, and metallurgy.

• The Group remains focused on maintaining dividends, robust liquidity, and building a strong financial base for future growth, with a long-term strategy approved in July 2026.

Financial highlights

• Group revenues rose 41% year-over-year to PLN 24,711 million, with KGHM Polska Miedź S.A. revenues up 48% to PLN 21,927 million.

• Adjusted EBITDA for H1 2026 was PLN 9,198 million, and net cash from operating activities increased by PLN 2,556 million, ending H1 2026 with PLN 1,217 million in cash.

• Operating margin improved from 25% to 34% year-over-year, with profit on sales at PLN 6,057 million.

• International assets contributed nearly 20% to adjusted EBITDA, totaling almost PLN 2.5 billion.

• Earnings per share rose to PLN 27.90 from PLN 2.90 year-over-year.

Outlook and guidance

• Construction of the fourth production line at Sierra Gorda is underway, targeting a 20% increase in metal production by 2030, with full capacity expected in H2 2030.

• Cost optimization program aims for PLN 1 billion in savings by 2028, with PLN 300 million already achieved.

• The Group's 2055+ strategy was approved in July 2026, maintaining focus on Polish resource base and long-term operational stability.

• Inventory levels expected to decline in H2 2026, releasing additional cash flow.

• Dividend policy remains a priority, with future payouts dependent on financial performance and macro conditions.