Pkp Cargo (PKP) Q2 2025 earnings summary

Executive summary

• Net loss for H1 2025 narrowed significantly to PLN 17.9 million from PLN 453.1 million year-over-year, reflecting the impact of restructuring and optimization measures.

• Revenue from customer contracts fell 20.8% year-over-year to PLN 1,821.2 million.

• The group is undergoing a formal restructuring process initiated in July 2024, with a focus on rail freight, intermodal, forwarding, terminal, and rolling stock services.

Financial highlights

• EBITDA for H1 2025 was PLN 237.0 million, up from PLN 114.6 million year-over-year.

• Operating costs (excluding depreciation and amortization) decreased 18.1% year-over-year to PLN 1,710.3 million.

• Capital expenditures (CAPEX) for H1 2025 totaled PLN 172.3 million, down 60.5% from H1 2024.

• Cash and equivalents at June 30, 2025, were PLN 482.5 million, down from PLN 589.1 million at year-end 2024.

• Cash flow from operations was PLN 145.5 million, down from PLN 501.7 million in H1 2024.

Outlook and guidance

• The restructuring plan targets EBITDA exceeding PLN 1 billion by 2031, with a shift in revenue structure toward intermodal transport and away from hard coal.

• The plan includes cost optimization, asset sales, and a focus on higher-margin intermodal and specialist transport segments.

• Employee benefit costs are expected to decrease from 45% to 31% of total costs by 2031.

• Management expects sufficient liquidity for at least 12 months, assuming successful execution of the restructuring plan.

• Next milestone: approval of the Restructuring Plan by the Creditor's Council on November 15, 2025.