Grupa Azoty (ATT) Q2 2025 earnings summary

Executive summary

• The group faced a challenging first half of 2025 due to high energy costs, weak demand, and regulatory pressures in the European chemical sector, resulting in a net loss of PLN 877.7 million, deepening from PLN 748.4 million in H1 2024.

• Positive EBITDA was achieved in core segments excluding Polyolefins, with improved operational performance and financial liquidity compared to H1 2024.

• Significant penalties were recovered from the Polimery Police Project contractor, and ongoing negotiations with Orlen and other stakeholders are focused on the Polyolefins project.

• Management and Supervisory Board changes were implemented, with new representatives appointed.

• The AZOTY BUSINESS transformation program was launched, focusing on cost optimization, capex control, and divestment of non-core assets.

Financial highlights

• H1 2025 revenue rose 6% year-over-year to PLN 7.14 billion, with Q2 2025 revenue at PLN 3.32 billion.

• EBITDA loss narrowed to -PLN 71 million in H1 2025 from -PLN 128 million in H1 2024; adjusted EBITDA (excluding Polyolefins) was positive at PLN 73 million.

• Net loss per share was PLN 8.10, compared to PLN 6.84 in H1 2024.

• Fixed costs fell by PLN 93 million, mainly due to lower employment and cost-cutting measures.

• Available funds at end-June ranged from PLN 670.4 million in cash to PLN 1.3 billion including credit and factoring facilities.

Outlook and guidance

• Fertilizer spreads are expected to remain stable in 2025, with potential improvement in 2026 following customs duties on Russian and Belarusian imports.

• The AZOTY BUSINESS transformation program and cost savings initiatives are expected to continue.

• Standstill agreements with financial institutions have been extended to 30 September 2025, with expectations for further extension and long-term solutions.