Jastrzebska Spólka Weglowa (JSW) Q1 2025 earnings summary

Executive summary

• Q1 2025 was marked by challenging market conditions, significant declines in coal and coke prices, and extraordinary operational events, resulting in a net loss of up to PLN 1,363.1 million and negative EBITDA.

• Coal production dropped 10.5% sequentially to 2,860.9 thousand tons, while coke production rose 1.3% to 703.7 thousand tons.

• The group focused on cost reduction, resilience, and continued execution of its transformation plan, targeting PLN 8.5 billion in positive effects by 2027.

• Force majeure events and mine incidents, including methane ignition and fires, led to production disruptions and asset impairments.

Financial highlights

• Net loss ranged from PLN 1,229.6 million to PLN 1,363.1 million in Q1 2025, with negative EBITDA of up to PLN 545.5 million.

• Sales revenue for Q1 2025 was between PLN 2,437 million and PLN 2,901.3 million, down 0.9% quarter-on-quarter and 34% year-over-year.

• Non-recurring events and impairments negatively impacted results by up to PLN 695 million.

• Working capital at the end of March 2025 was about PLN 1.2 billion, down over 51% quarter-on-quarter.

• Cash at the end of Q1 2025 ranged from PLN 510 million to PLN 769 million, down from year-end 2024.

Outlook and guidance

• Production targets for 2025 are estimated between 12 and 14 million tons, with management aiming for the higher end.

• Strategic Transformation Plan and efficiency initiatives are expected to yield significant cost savings, with 85% of annual targets identified by May 2025.

• CAPEX for 2025 is being scaled back, with a reduction of PLN 1.2 billion planned.

• Liquidity remains a focus, with actions to defer social security payments and seek tax refunds.