‘The second quarter of 2026 was marked by significant geopolitical turbulence, particularly the situation in the Middle East and the blockade of the Strait of Hormuz, which drove a sharp rise in energy commodity prices. For Grupa Azoty, this challenging environment brought both cost pressures and opportunities — we saw a clear increase in interest from European customers in stable, local production. Despite lower sales volumes in the agro segment and planned maintenance shutdowns, our results confirm a consistent year-on-year recovery in operating profitability. The significant improvement in consolidated EBITDA and the stabilization of the operating margin at 8.7% in the second quarter show that our efficiency measures are delivering the expected results,’ said Jacek Podgórski, Deputy CEO of Grupa Azoty.

In Q2 2026, an update to the estimated provision for CO2 emission allowances for 2025 resulted in a PLN 53 million reduction in other operating income previously recognized in Q1 2026.

Segment performance in Q2:

Agro segment: The EBITDA margin improved year-on-year to plus 3.9%. The key challenge in the period was a 27% year-on-year decline in sales volume, driven partly by the scheduled maintenance shutdowns and changes to the product mix. European demand softened after the spring application season, and price affordability remained a significant barrier for many farmers amid high cost pressure. Grupa Azoty’s nitrogen and multi-nutrient fertilizer prices rose year-on-year in line with higher gas prices, and specialty fertilizer prices also increased.

Chemicals segment: The EBITDA margin was strong at 19.9%. While global demand remained relatively weak amid the lack of a clear economic recovery and ongoing geopolitical conflicts, the segment saw sharp price increases for key products due to a supply-demand imbalance. The situation in the Middle East halted a large share of global sulfur and technical urea supplies, including shipments to Europe. As a result, product prices in the segment rose sharply, most notably for sulfur, technical-grade urea, and NOx-related products (NOxy). Titanium dioxide was the only product to see a price decline. In volume terms, the Group recorded higher sales of technical urea, Pulnox, and aldehydes, among others. Given difficult market conditions, Grupa Azoty Puławy continued to keep melamine production suspended.

Plastics segment: The segment posted an EBITDA margin of minus 14.0%. Profitability continues to be weighed down by Grupa Azoty Polyolefins, whose polypropylene plant has been offline since Q3 2025; excluding this entity, the segment margin was plus 0.9%. The plastics industry continues to operate in a difficult environment of high energy and feedstock costs (including rising phenol prices), weak European demand, and competition from China. Reflecting these conditions, Grupa Azoty Puławy did not resume caprolactam production. Lower unit coal prices had a positive effect on costs, partly offset by higher electricity prices.

Feedstock environment

The feedstock environment in Q2 2026 was highly volatile, with year-on-year cost increases across most key energy carriers and raw materials. The average TTF gas spot price stood at EUR 45.6/MWh, up 28% year-on-year. Unit costs for propylene, terephthalic acid, and phenol consumption were also higher year-on-year. High sulfur prices had a significant impact on the chemicals segment, while phosphate rock and coal costs declined.

The figures presented are preliminary estimates and may be subject to change. Final financial results will be presented in the consolidated periodic report, scheduled for publication on 10 September 2026.