LW Bogdanka after Q1 2026: maintaining competitiveness under challenging market conditions

In the first quarter of 2026, the Lubelski Węgiel Bogdanka Group, with 
its parent company, Lubelski Węgiel Bogdanka S.A. – one of the leading hard coal producers in Poland – generated consolidated sales revenue of PLN 702.6 million. 

The net loss amounted to PLN 22.1 million and the EBITDA result to PLN 25.2 million, with the EBITDA margin at a level of 3.6%. 

Despite challenging market conditions, LW Bogdanka has maintained its stable liquidity by increasing yield and investing in new mining pits. The share of exports in the Group's revenue exceeded 10%.

In the first quarter of 2026, despite decreasing demand, changes in the energy sector and competition from cheap coal sold below the cost of extraction, we maintained our financial stability by increasing our yield and investing in new mining pits. We owe our strong market position to operational efficiency, flexibility, cost discipline and high productivity. The development of LW Bogdanka as a sustainable and innovative energy business, responding to the needs of the environment, the local community and diversifying its sources of revenue, will only be possible due to the synergy between the company’s activities and the stable and rational market environment, including regulations conducive to efficient mining and strengthening energy security,

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

Production and sales 

In Q1 2026, LW Bogdanka sold 2.08 million tonnes of commercial coal. Despite a 6.9% y/y decline, the Group maintained its strong market position, achieving a 29.1% share in coal supplies to the commercial power sector in Poland.

Commercial coal production amounted to almost 2.04 million tonnes, i.e. 616 thousand tonnes less compared to Q1 2025 (-23.2%). At the same time, the coal recovery rate rose to 71.4%, representing an improvement of 2.4 percentage points compared to Q1 2025. 

Sales of coal to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. accounted for approximately 72% of LW Bogdanka’s total revenue, whereas a year earlier the share of these two key customers was 10 percentage points higher.

The share of exports in LW Bogdanka's revenue increased to 4.2% (compared to 3% in the previous year). The coal sold both through intermediaries and directly by the Company was mainly shipped to Ukraine and Slovakia..

Investments  

In Q1 2026, the LW Bogdanka Group allocated nearly PLN 151.2 million to capital expenditure, accounting for 18.5% of the full-year CAPEX budget. Over 85% of these funds were allocated to the construction of new tunnels (approximately 6.06 km) and the modernisation of existing ones. 

The construction and modernisation of mine workings remain a key focus of the investment plan throughout 2026, with expenditure expected to reach PLN 455 million. Moreover, as part of new strategic initiatives and renewable energy projects, plans include the purchase of land for a photovoltaic farm. Moreover, expenditure has been earmarked for the documentation of the new Economic Zone, under development in collaboration with PGE Dystrybucja S.A. Lublin Branch and the Municipality of Łęczna.

Financial results  

In Q1 2026, the Group recorded consolidated sales revenue of PLN 702.6 million, i.e. 19.1% less than in the previous year. EBITDA stood at PLN 25.2 million, down 93.6% y/y.

The operating loss (EBIT) amounted to PLN 24.8 million, compared with the profit of PLN 343.7 million in Q1 2025. The Group’s net loss amounted to PLN 22.1 million, compared with the profit of PLN 283.9 million a year earlier.

The results for Q1 2026 were primarily affected by market factors, including competitive pressure, lower coal sales prices and lower sales volumes.

The EBITDA margin stood at 3.6%, compared to 45.5% in Q1 2025, falling by 41.9 percentage points y/y. Despite these challenges, the Group’s liquidity position remained stable, enabling it to carry out strategic projects.

The results for the first quarter of 2026 continued to be significantly affected by the challenging market environment, in particular lower coal sales prices and decreasing demand for steam coal. Despite these circumstances, the Group maintained a stable liquidity position, continued to implement key investment projects and improved its coal yield. We have been consistently focusing on operational efficiency, cost discipline and flexible adapting of our operations to changing market conditions, whilst maintaining a strong position in the supply of coal to the commercial power sector

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

Key financial data

Decision concerning the dividend  

The Management Board of LW Bogdanka recommends that the Company's net loss for 2025, amounting to approximately PLN 160.58 million, should be fully covered from the reserve capital. At the same time, it proposes that no dividend should be paid from capital created from retained earnings (Current Report 8/2026 of 30 April 2026). The recommendation was approved by the Supervisory Board. 
The final decision on this matter will be taken by the Annual General Meeting scheduled for 27 May 2026.