Jastrzebska Spólka Weglowa (JSW) Q3 2025 earnings summary

Executive summary

• The period saw deepening losses, negative working capital, and significant market and operational challenges, especially in the steel sector, with declining prices and demand impacting results.

• Management initiated a comprehensive restructuring and reorganization program to address liquidity and operational challenges, including cost optimization, debt restructuring, and asset sales.

• Net loss for the period was PLN 2,511.6 million, a substantial improvement from the PLN 5,634.7 million loss in the prior year, but Q3 2025 net loss deepened to PLN 793.7 million.

• Major incidents at several mines led to production losses and additional costs, with force majeure declarations and impairment triggers.

• Management is actively negotiating with trade unions, financial institutions, and the State Treasury to secure support and adapt cost structures.

Financial highlights

• Sales revenues for the first nine months of 2025 were PLN 8,522.4 million, down 24.9% year-over-year, with Q3 revenue up 0.8% quarter-on-quarter.

• Q3 EBITDA was negative at PLN 528.6 million, with a year-to-date loss of PLN 2.8 billion after three quarters; EBITDA for 9M 2025 was PLN (2,167.2) million.

• Net working capital as of September 30, 2025, stood at PLN 992.1 million, while cash and cash equivalents decreased to PLN 454.0 million at period end.

• Gross loss on sales was PLN 1,534.0 million, and basic and diluted loss per share was PLN 21.39.

• Net cash flows from operating activities were negative at PLN -1,303.1 million.

Outlook and guidance

• Management aims to maintain liquidity until September 2026 if restructuring and third-party support measures are implemented.

• The restructuring plan targets cost optimization, debt restructuring, and asset sales, with failure to implement key measures jeopardizing the company's ability to continue as a going concern.

• Production plan for 2026 is set at 13.5 million tons, considered an optimum scenario factoring in operational risks.

• CapEx is planned to be scaled back in 2026 and subsequent years, with focus on completing ongoing investments.