LW Bogdanka after H1 2026: increasing efficiency and strengthening market position

EBITDA stood at PLN 113.0 million, resulting in an EBITDA margin of 8.3%, whilst net profit reached PLN 5.1 million. 

In a challenging market environment, LW Bogdanka focused on maintaining efficiency and financial security whilst preserving stable liquidity – it improved its yield, invested in new workings and developed its international sales, which accounted for over 3% of revenue

In the first half of 2026, we increased commercial coal production by 13.1%, improved the yield by 9.2%, and the length of the workings excavated rose by nearly 37%. This is the result of consistent efforts to improve operational efficiency and the effective preparation of mining faces. At the same time, we increased our share of coal supplies to the commercial power sector in Poland to 31%, strengthening Bogdanka’s position on the domestic market. In a challenging environment, we are focusing on safe and efficient production, maintaining cost discipline and fulfilling our commitments to our customers.

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

Production and sales 

In the first half of 2026, LW Bogdanka sold nearly 4.06 million tonnes of commercial coal, 1.3% more than in the previous year. The Company strengthened its already strong market position, achieving a 31% share of coal supplies to the commercial power sector in Poland, compared with 29.1% at the end of the first quarter of 2026. In the second quarter of 2026 alone, coal sales rose by 11.8% compared with the second quarter of 2025, reaching 1.97 million tonnes.

Commercial coal production amounted to over 4.38 million tonnes, 509,000 tonnes more than in the first half of 2025 (+13.1%). At the same time, the coal yield increased to 72.1%, up 6.1 percentage points year-on-year, confirming LW Bogdanka’s continued lead in terms of production efficiency. In the second quarter of 2026, commercial coal production almost doubled, reaching 2.35 million tonnes compared with 1.22 million tonnes a year earlier (+92.2%) – this confirms the Group’s ability to rapidly increase production volumes, thereby strengthening its competitive position.

The share of exports in revenue rose to 3.2% compared with 3.1% a year earlier. Coal, sold both through intermediaries and directly by the Company, was primarily exported to Ukraine and Slovakia.

Coal sales to Enea Wytwarzanie sp. z o.o. and Enea Elektrownia Połaniec S.A. accounted for approximately 73% of LW Bogdanka’s total revenue, 7 percentage points more than the previous year. On 17 June 2026, LW Bogdanka entered into addenda to long-term contracts for the supply of thermal coal with both customers. These include an increase of approximately 6% in the volume of supplies to Enea Wytwarzanie in 2026 compared with the level set out in the Company's last report from December 2025, as well as modifications to the delivery schedules for Enea Wytwarzanie and Enea Elektrownia Połaniec, including deliveries made by rail by Bogdanka.

The value of the long-term contract with Enea Wytwarzanie for the period 2017–2036 has risen to an estimated PLN 25.64 billion net, whilst the value of the contract for the period 2026–2036, excluding additional options, is currently estimated at PLN 12.59 billion net. This represents an increase of 0.4% and 0.9% respectively compared with the figures reported in December 2025. The value of the long-term contract with Enea Elektrownia Połaniec, valid until 2033, has remained unchanged.

Investments 

In the first half of 2026, the LW Bogdanka Capital Group allocated a total of approximately PLN 372.8 million to investments, which corresponds to 45.5% of this year’s CAPEX plan. As much as PLN 258.6 million, or 69.4% of the expenditure incurred, was directed towards the development of new workings and the modernisation of existing ones. In the first half of the year, a total of 10,994 metres of workings were excavated, including 10,502 metres of investment-related workings.

Financial results 

After the first six months of 2026, LW Bogdanka’s consolidated sales revenue amounted to PLN 1.36 billion (-10.4% y/y). In the second quarter alone, it totalled PLN 661.6 million, 1.2% higher than in the second quarter of 2025.

The Group’s EBITDA fell by 72.3% to PLN 113.04 million, whilst operating profit (EBIT) fell by 97.7% to PLN 7.19 million. Net profit amounted to PLN 5.09 million (-98.1% y/y). The performance figures were significantly influenced by the high comparative base in the first half of 2025. LW Bogdanka recognised a one-off compensation payment of PLN 144.85 million, which boosted the result for that period. At the same time, in the second quarter of 2026, LW Bogdanka generated PLN 87.85 million in EBITDA, representing a 544.6% increase year-on-year.
The EBITDA margin stood at 8.3%, 18.5 percentage points lower than a year earlier, whilst the EBIT margin was 0.5%, compared with 20.4% a year earlier. The Group’s liquidity position remained stable. In the second quarter alone, the EBITDA margin stood at 13.3% (+11.2 percentage points year-on-year), whilst the EBIT margin was 4.8% (+9.8 percentage points year-on-year).

The mining sector’s results remain under pressure from falling coal prices and changes on the energy market. These factors are affecting our revenue levels and, combined with rising mining and production costs, have led to a decline in half-yearly EBITDA. At the same time, the second-quarter results show a marked improvement. EBITDA reached nearly PLN 88 million and was significantly higher than a year ago. Its margin rose to 13.3%, and net profit exceeded PLN 27 million. The Group’s liquidity position remains stable. Despite an exceptionally high comparative base, comprising PLN 144.8 million in compensation recognised in last year’s results, we generated over PLN 209 million in cash flow from operating activities in the first half of the year. We are consistently adapting our operations to changing market conditions – from planning new workings and organising production to sales and diversifying our business. We want to leverage Bogdanka’s cost and operational advantages to strengthen its competitiveness and resilience to market volatility.

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

Key financial data (in PLN thousand)

For further information, please contact:

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

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