LW Bogdanka after 2025: a strong position in the steam coal market despite price pressure

Net profit amounted to PLN 263.8 million (after adjusting for the impairment loss on assets), whereas EBITDA stood at PLN 543.1 million.
The EBITDA margin amounted to 19.0%, down by 7.8 percentage points compared to the previous year. Despite the challenging environment, LW Bogdanka maintained stable liquidity.

The financial results for 2025 confirm Bogdanka’s resilience built on sustainable competitive advantages such as operational efficiency, flexibility, cost discipline and one of the highest labour productivity ratios in the industry. These strengths have enabled us to successfully face the challenges of a difficult market resulting from falling demand, changes in the energy sector, and competition from cheap raw materials sold below the cost of mining, all without state support When the sector imposes prices below a reasonable level, it becomes difficult to maintain profitability. Therefore, the stability of the sector requires regulatory changes that reward efficient production and economic rationality, simultaneously strengthening energy security. In response to those challenges, we focus on ensuring financial security and maintaining operational stability and flexibility through the use of innovative organisational and technological solutions

- says Zbigniew Stopa, President of the Management Board of LW Bogdanka.

Production and sales 

LW Bogdanka sold 7.7 million tonnes of commercial coal, 5.6% less than in 2024. The group maintained its prevailing market position, securing a 30.4% share of coal supplies to the commercial power sector in Poland.

Commercial coal production amounted to almost 7.6 million tonnes, 327,000 tonnes less than in 2024 (-4.1%). The coal recovery rate stood at 65.5%, as in the previous year. 

Coal sold to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. accounted for approximately 81% of LW Bogdanka’s total sales revenue. A year earlier, the share of these two key customers was 1 p.p. higher.

The share of exports in LW Bogdanka's revenue increased to 2.7% compared to 1.3% in the previous year. Coal was sold to Ukraine and Slovakia both through an intermediary and directly by the Company.

Investments 

In 2025, the LW Bogdanka Group allocated almost PLN 623 million for investment projects, accounting for 89.3% of the annual CAPEX budget. Over 68% of this expenditure was allocated to the construction of new mine workings and the modernisation of existing ones, and the Group completed the construction of mine workings with a total length of approximately 18.4 km.

In 2026, the Group plans to increase its capital expenditure to almost PLN 819.3 million. As in 2025, the major part of the expenditure (PLN 455 million) is expected to be spent on the construction of new workings and the modernisation of existing ones. As part of new strategic and RES initiatives, among others, the purchase of land for a new photovoltaic farm has been planned. Moreover, expenditure has been earmarked for the documentation relating to the new Economic Zone, developed in collaboration with PGE Dystrybucja S.A. Lublin Branch and the Municipality of Łęczna.

Financial results 
The Group generated consolidated sales revenue of PLN 2,854.3 million, down by 22.1% compared to 2024. In the Q4 2025, this figure stood at PLN 845.1 million (-20.6% YoY). At the end of 2025, EBITDA stood at PLN 543.1 million (-44.6% YoY) and PLN 240.7 million in Q4 (-45.5% YoY). 
At the end of 2025, the operating loss (EBIT) decreased to PLN 218.1 million, compared to the loss of almost PLN 1,855.0 million in the previous year. In Q4, the EBIT loss amounted to PLN 359.5 million, compared to PLN 910.0 million in the same period of 2024. 

The Group closed 2025 with a net loss of PLN 159.5 million, compared with a net loss of PLN 1,491.4 million at the end of 2024. In the last quarter of 2025, the Group recorded a net loss of PLN 289.4 million, compared to the net loss of PLN 735.2 million in the corresponding period of 2024. 

In 2025, the impairment test performed resulted in the impairment loss of PLN 522.5 million (as disclosed in Current Report No. 4/2026 of 18 February 2026).  Write-downs for the entire 2024 amounted to PLN 2,437.3 million. These two events had a significant impact on the operating and net profit figures for both periods under analysis.

After cleaning up the results to exclude the impact of the impairment test, operating profit (EBIT) at the end of 2025 stood at PLN 304.4 million, and net profit at PLN 263.8 million.

The EBITDA margin in 2025 reached 19.0%, down by 7.8 percentage points compared to the previous year. In Q4 2025, it stood at 28.5% (-13 percentage points YoY). The Group's liquidity position remained stable.

LW Bogdanka’s financial results were affected by both negative factors, such as market pressure, lower coal sales prices and reduced sales volumes, and the positive impact of the settlement of a claim reported in Q1 2025 amounting to PLN 144.85 million (Current Report No. 4/2025 of 24 January 2025). The loss was related to underground assets and it was the result of the incident that occurred in February 2023.

Moreover, lower depreciation also had an impact on the operating and net profit, as a result of the reduction in the carrying amount of fixed assets following the write-downs applied in 2024.

In 2025, Bogdanka maintained a stable operational and financial position, providing a sound foundation for its future activities. Current market conditions impair margins and our cash position, while the support for some Silesian mines disrupts competitiveness. Under such circumstances, maintaining a leading position in the market for the supply of steam coal to Poland’s commercial power sector – whilst effectively competing with imports – requires even greater cost discipline and flexibility in management.

– says Artur Wasilewski, Vice-President of the Management Board for Economic and Financial Affairs.

Key financial data (in PLN thousand)

* As a result of the impairment test carried out as at 30 June 2024 and as at 31 December 2024. LW Bogdanka S.A. recognised impairment losses on its fixed assets amounting to PLN 1,174.2 million and PLN 1,249.5 million, respectively. These write-downs charged the operating result and net result, but did not affect EBITDA or the Company's liquidity position.