KGHM Polska Miedz (KGH) Q4 2025 earnings summary

Executive summary

• 2025 was a strong year, with group revenues rising 3% year-over-year to PLN 36,366 million, driven by higher metals prices and significant contributions from both domestic and foreign assets, despite macroeconomic volatility and global geopolitical pressures.

• Adjusted EBITDA increased 22% year-over-year to PLN 10,276 million, mainly due to improved performance at Sierra Gorda and higher metals prices.

• Net profit for the period grew to PLN 3,688 million, up by PLN 818 million, supported by higher joint venture profits and segment EBITDA.

• Foreign assets became financially independent, repaying loans to the parent company and generating profits, especially from U.S. and Chilean operations.

• Strategic focus remains on prudent investment, cost optimization, diversification, and advancing energy transition initiatives.

Financial highlights

• Copper prices rose from $8,500 to $12,500 per ton during 2025, supporting strong financial results.

• Group revenue increased by 3% year-over-year to PLN 36,366 million, with all segments contributing positively to EBITDA.

• Adjusted EBITDA growth was significant, tripling over the last two years and rising 22% year-over-year to PLN 10,276 million.

• Overseas assets contributed 48% of adjusted EBITDA, with Sierra Gorda SCM repaying over $1 billion to the group.

• In-kind costs and minerals extraction tax rose, with the latter increasing 22% year-over-year to PLN 4,693 million.

Outlook and guidance

• Production and sales volumes for copper and silver are expected to remain stable in 2026, with similar deposit parameters as 2025.

• Working capital is projected to grow until September 2026, with strong positive flows anticipated in Q4.

• The group plans to announce its updated strategy at the end of Q2 2026, incorporating recent experiences and market conditions.

• Decision on the fourth production line at Sierra Gorda, potentially increasing output by 20%, is expected by mid-2026.

• Continued focus on energy transition, emissions reduction, and expansion of renewable energy sources.