A huge increase in profit in Newag. So half a year PLN 129.7 million, by 177.7 percent more yaws

Newag estimates that in the first half of 2025 the group generated PLN 129.7 million net profit, while in the corresponding period of the previous year the profit was PLN 46.7 million (+177.7 percent) – said the rolling stock manufacturer in the announcement.

The value of sales revenues in the first half of 2025 amounted to PLN 849.2 million, which is an increase of PLN 273.9 million (+47.6 percent) in relation to data for the first half of 2024.

During this period, the EBITDA value amounted to PLN 183.4 million and was higher by PLN 103.3 million (+128.9 percent)

It was stated that the results of the company and the main group were influenced by a significant increase in sales revenues, which is a consequence of the planned implementation of the contracts obtained, as well as the value of the gross margin on sales, which amounted to PLN 238.8 million (by PLN 99.1 million higher yield); In percentage, the margin was 28.1 percent. And it was 3.8 percentage points higher compared to the first half of 2024.

It was pointed out that the achieved margin is the result of the increase in revenues resulting from the built -in portfolio of orders ensuring serial production and effective use of resources, the structure of sales completed with a predominance of revenues in the segment of electrical locomotives and inflationary price change, whose dynamics has been particularly visible in the last four years.

It was added that the results were also affected by a favorable EUR/PLN exchange rate in the analyzed period. For the implementation of current contracts concluded in the period of high variability of foreign exchange rates, the group accepted higher levels of EUR/PLN, therefore, when maintaining prices in the base currency at an unchanged level, the real purchase prices of materials were a few percent lower than the budget.

It was stated that the increase in the same period of the general management of the general management was also influenced by an increase in the previous year by PLN 14.2 million (+21.3 percent), mainly due to the increase in remuneration costs and their derivatives. It was added that the increase in the costs of general management in the analyzed period was, however, significantly lower than the dynamics of revenues, which positively affected the operational margin and confirms the scale effect in the company's operations.

The negative result was also influenced by financial activities in the amount of PLN 4.7 million, and the financial costs decreased by PLN 2.6 million (-19.4 percent) compared to the same period of the previous year.

The final results will be forwarded in the report for the first half of 2025, which will be published on September 12, 2025. (PAP Biznes)

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