‘For another consecutive quarter, we recorded positive EBITDA in the Agro segment, despite the still challenging business environment related to record-high volumes of imported fertilizers from the East. We achieved this result thanks to intensified sales efforts, expansion of our product portfolio, and higher product prices, even as natural gas prices remained elevated. We expect that, starting from July 1, 2025, the gradual introduction of tariffs on nitrogen and compound fertilizers imported from Russia and Belarus will have an increasingly positive impact on Agro results over the longer term,’ commented Andrzej Skolmowski, President of the Management Board, on the published estimates.

‘In Plastics and Chemicals, the unfavorable market environment — persistently weak demand and product imports from outside Europe — continues to prevent us from delivering positive results. We also see no clear signs of improvement in the near term. To secure the Group’s financial stability and improve operating performance across all subsidiaries, we are consistently implementing recovery measures under the AZOTY BUSINESS Program, integrating functional areas (corporate, procurement, services), thereby reducing costs,’ President Skolmowski added.

The Group’s raw material environment in Q2 remained under the influence of higher natural gas prices, which were 12% higher compared to the same period of the previous year. Unit consumption costs of electricity and coal decreased.

A significant negative impact on results came from the import of products from Russia and Belarus; however, going forward, this effect is expected to be mitigated by protective mechanisms introduced at the EU level.

Agro Segment

In the Agro Segment, compared to the same period of the previous year, the main factors driving Q2 2025 results were higher sales volumes and prices, along with higher natural gas costs.

The continued influx of fertilizers from eastern markets remained the strongest factor influencing the situation of Grupa Azoty and other European fertilizer producers. The Group’s efforts — intensified sales activities and a strengthened product portfolio — helped limit the scale and negative effects of this trend. In Q2 2025, Grupa Azoty recorded an 11% y/y increase in total sales volumes, including a 14% y/y increase in nitrogen fertilizers. Tariff increases on nitrogen and compound fertilizers imported from Russia and Belarus, effective July 1, 2025, and their gradual escalation in subsequent periods, are expected to positively affect the Group’s future financial results, though the effect may materialize with some delay.

In Q2, natural gas prices trended downward until the end of April, then rose sharply until mid-June, followed by another downward trend. The average TTF spot price was EUR 35.5/MWh, up 12% compared to Q2 2024. Sulfur prices followed a global upward trend year on year. Compared to Q2 2024, lower prices were recorded for potassium salt (despite rising market quotations) and phosphorites. Lower unit costs of energy media — electricity and coal — also had a positive effect on results. Fertilizer prices were higher y/y, for both nitrogen and compound fertilizers.

The Agro Segment’s EBITDA margin in Q2 2025 was 1.2%, up 6.6 percentage points from the same period of the previous year.

Chemicals Segment

In the Chemicals Segment, Q2 2025 saw a y/y decline in sales volumes of key products, partially offset at the revenue level by higher prices of selected products. Raw material costs, excluding gas, were lower y/y.

The segment’s performance was constrained by weak global economic conditions and limited demand for chemicals. Trade tensions linked to tariffs and their impact on global supply chains further suppressed demand growth. Chemical product markets were characterized by ample availability and a “wait-and-see” attitude toward demand recovery. Prices of most segment products were higher y/y, with the strongest increases recorded for technical-grade urea and NOX products. Prices of plasticizers declined. While most raw material prices were lower y/y, higher gas prices negatively affected results.

Due to the persistently difficult supply-demand situation, Grupa Azoty Puławy did not produce melamine in Q2 2025.

The Chemicals Segment’s EBITDA margin was minus 3.7% in Q2 2025, which, although negative, represented an improvement of 5.7 percentage points compared to the same period of the previous year.

Plastics Segment

In the Plastics Segment, Q2 2025 recorded a y/y decline in sales volumes, particularly in polypropylene, as well as lower product prices (polyamide, polypropylene). Raw material prices showed both decreases (phenol) and increases (propane).

In Europe, baseline demand in most industries consuming polyamide and polypropylene remained stable but low. Weak sentiment in the automotive sector worsened following the introduction of U.S. tariffs. Despite planned and unplanned production stoppages, supply to the market remained sufficient. Declining demand for European plastics was also driven by the influx of competitively priced imports.

Due to market conditions, Grupa Azoty Puławy did not resume caprolactam production in Q2 2025.

The Plastics Segment’s EBITDA margin was minus 55.2% in Q2 2025, down 48.6 percentage points compared to the same period of the previous year. The main negative impact came from Grupa Azoty Polyolefins, primarily due to underutilization of production capacity during plant startup and adjustment processes, coupled with ongoing weakness in the polypropylene market.

The presented figures are preliminary and subject to change. Final results will be published in the consolidated report for the first half of 2025, scheduled for release on September 24, 2025.