LW Bogdanka after three quarters of 2025: results under the influence of the challenging market environment

Under the conditions of price pressure, the Group has maintained liquidity at a safe high level, although a gradual reduction of the financial cushion is noticeable. EBITDA amounted to PLN 302.4 million (-49.3% y/y), with a margin of 15% (a decrease of 5.7 p.p. y/y). The EBIT margin amounted to 7%. The group ended the period of three quarters of 2025 with a net profit of PLN 129.9 million, compared to the loss of PLN 756.2 million in the previous year.

During three quarters of 2025, Bogdanka accomplished its operational targets and maintained stable production levels, despite the challenging market environment and unfavourable longwall layout in the second and third quarter. Aggressive pricing policies pursued by entities benefiting from subsidies affect the market and sales prices, requiring the Company to exercise greater cost discipline and adopt a flexible approach to production planning. Further strengthening of the Company's foundations remains a priority – through maintaining operational efficiency, implementing efficiency-enhancing investments and activities supporting energy transformation and regional development.

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

Production and sales 

LW Bogdanka sold approximately 5.3 million tonnes of commercial coal in three quarters of 2025, a decrease of 6.5% compared to the corresponding  period of 2024. Despite lower sales, the Company maintained its leading market position. The Group's share in coal deliveries to the commercial power industry in Poland was 31.9%.

The Group produced almost 5.2 million tonnes of commercial coal, 172,000 tonnes less than in the previous year (-3.2%) Coal yield was 63.9%, compared to 63.5% for three quarters of 2024.

Coal sales to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. accounted for almost 80% of total revenue on sales. A year earlier, the share of these two key customers was 2 p.p. higher. 

The share of exports in LW Bogdanka's revenue increased to 3% (from 1% in the previous year). Coal sale to Ukraine and Slovakia in three quarters of 2025 was carried out both through an intermediary entity and directly by the Company.

Investments 

In three quarters of 2025, the LW Bogdanka Group allocated almost PLN 448.3 million for investment projects, accounting for 64.3% of the annual CAPEX budget. The vast majority of these expenses, as much as 70%, was earmarked for developing new pits and upgrading existing ones. The group created excavations with a total length of 13.9 km.

Financial results 

After three quarters of 2025, LW Bogdanka's revenues amounted to PLN 2 009.2 million, which means a decline of 22.7% compared to the corresponding period in 2024. Lower prices and reduced demand for coal contributed to the decline in revenue.

The Group's EBITDA result reached the value of PLN 302.4 million, decreasing by 49.3% y/y. Operating EBIT stood at PLN 141.4 million, compared to the loss of almost PLN 945 million in the previous year. Net profit amounted to PLN 129.9 million, compared to the loss of PLN 756.1 million at the end of Q3 2024 (it should be recalled that the results for three quarters of 2024 were affected by a write-down on fixed assets). 

The EBITDA margin reached 15% (-o 5.7 p.p. y/y) and the EBIT margin amounted to 7% (+43.3 p.p.). The Group's liquidity position remained stable.

The Group's financial results for three quarters of 2025 were significantly affected by the liquidation of the loss for the first quarter of this year, amounting to PLN 144.85 million (described in current report No. 4/2025 of 24 January 2025). The damage affected underground assets and was related to the event that occurred in February 2023. 

The results of the current financial year will also be affected by lower depreciation and amortisation as a result of the write-down on the carrying value of fixed assets in the amount of PLN 1.17 billion applied in Q2 2024  In three quarters of 2025 this write-down had a negative impact on operating profit and net profit, but had no impact on EBITDA or LW Bogdanka's liquidity position.

After three quarters of 2025, Bogdanka maintains a its stable financial position and the safe balance sheet structure, despite a very challenging market environment. The result for the period was affected by compensation for mining damages and lower depreciation related to the write-downs applied in 2024. Due to consistent cost optimisation, the Company maintains good liquidity and continues to invest to improve its operational efficiency. Current market conditions limit the potential for margin generation and the support addressed to some Silesian mines distorts pricing mechanisms. This forces us to be even more cost-conscious and flexible in our management

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

Key financial data (in PLN thousand)

* Due to the indications of potential impairment, LW Bogdanka created a write-down on fixed assets in the amount of PLN 1.17 billion. This write-down charged the operating result and net result, however, it did not affect EBITDA or the Company's liquidity position. 

For further information, please contact:

Marcin Kujawiak, Lubelski Węgiel „Bogdanka” S.A.
tel. 667 45 02 94
e-mail: mkujawiak@lw.com.pl  

Magda Kołodziejczyk, M+G
tel. 22 416 01 02, 501 16 88 07
e-mail: magda.kolodziejczyk@mplusg.com.pl