Jastrzebska Spólka Weglowa (JSW) Q2 2025 earnings summary

Executive summary

• H1 2025 saw a significant year-over-year decline in revenue and profitability, with net loss and EBITDA both negative but sequentially improved in Q2; net loss for H1 was PLN 1,798.0 million, a substantial improvement from H1 2024.

• Coal production in Q2 2025 reached 3.34 million tons, up 16.7% over Q1, with coking coal extraction increasing and steam coal reduced; coke production also rose 0.5% quarter-on-quarter.

• The company is executing a Strategic Transformation Plan focused on operational efficiency, cost optimization, and liquidity-supporting measures, including incentive programs, CapEx reductions, and asset sales.

• Challenging market conditions persisted, with lower global coking coal and coke prices, production disruptions due to mine incidents, and high inventories.

Financial highlights

• H1 2025 sales revenues were PLN 4,714.8 million to PLN 5,662.0 million, down sharply year-over-year due to lower prices and volumes.

• EBITDA for H1 2025 was negative, with net loss for Q2 2025 at PLN (712.0) million, an improvement from Q1.

• Gross loss on sales for H1 2025 was PLN 1,060.9 million, compared to a gross profit in H1 2024.

• Cash and cash equivalents at June 30, 2025, ranged from PLN 629.4 million to PLN 677.4 million, down from previous periods.

• Proceeds from redemption of investment certificates in H1 2025 totaled PLN 2,670.1 million, supporting liquidity.

Outlook and guidance

• The company’s going concern assumption is based on the implementation of the Strategic Transformation Plan, cost reductions, CapEx cuts, and potential windfall tax refunds.

• Production for 2025 is expected to exceed 13 million tons, with a business plan for 2026 targeting a run rate of 15 million tons, adjusted for force majeure events.

• Liquidity is projected to be maintained until September 2026 if planned measures are implemented; otherwise, liquidity could be lost as early as March 2026.