Cognor S.A.

Cognor S.A. Reports Financial Struggles Amid Market Challenges and Investment Strains

Poraj, Poland – May 15, 2026: Cognor Holding S.A., a leading producer of long steel products in Central Europe, has released its condensed interim financial statement for the first quarter of 2026, revealing continued financial challenges. The company reported a net loss of PLN 684,000 for the quarter, a significant improvement compared to the PLN 14.8 million loss in the same period last year. Revenues increased to PLN 591.3 million, up from PLN 543.3 million in Q1 2025, driven by higher sales of steel products and scrap materials. However, the group faced negative cash flows across all activities, with a total cash outflow of PLN 122.1 million during the quarter.

Despite the revenue growth, Cognor continues to grapple with liquidity issues and covenant breaches across multiple financing agreements. The company has been unable to meet financial covenants, including EBITDA and debt-to-EBITDA ratios, in agreements with major financial institutions such as Banco Santander, Alior Bank, and Bank Pekao. These breaches have led to the reclassification of long-term debt into short-term liabilities, further straining the company's financial position. Cognor has sought waivers from its financial partners to address these breaches and avoid premature repayment demands.

Additionally, the company is dealing with the financial impact of significant modernization projects, including the construction of a state-of-the-art light section mill in Siemianowice Śląskie, which exceeded its budget and timeline. These investments, coupled with market challenges such as fluctuating energy prices and raw material costs, have contributed to reduced profitability and operational disruptions.

Cognor has taken steps to strengthen its financial structure, including securing an additional subordinated loan of PLN 87 million in May 2025 and raising PLN 300 million through a private share issuance at the end of 2025. The company remains optimistic about its ability to meet its financial obligations, citing improved operational results and anticipated recovery in financial performance.

Relevance to Cognor S.A.: The financial report highlights the challenges faced by Cognor S.A. due to market volatility, high energy costs, and investment strains, which directly impact its vertically integrated steel production model and ability to maintain liquidity amidst covenant breaches.

Cognor Holding S.A. Faces Financial Challenges Amid Strategic Investments and Market Pressures

Poraj, Poland — May 15, 2026: Cognor Holding S.A., a leading steel producer in Central Europe, has reported a net loss of PLN 900,000 for the first quarter of 2026, a significant improvement compared to the PLN 13.3 million loss recorded in the same period last year. Despite this progress, the company continues to face financial challenges stemming from extensive modernization projects and unfavorable market conditions.

Over the past three years, Cognor has undertaken major investments, including the modernization of its Gliwice steel plant, upgrades to its Kraków rolling mill, and the construction of a state-of-the-art Light Section Mill (LSM) in Siemianowice Śląskie. These projects, totaling over PLN 1.2 billion, have led to temporary production halts, cost overruns, and extended timelines, impacting the company's profitability and cash flow. Additionally, the company has faced difficulties in maintaining financial covenants due to these disruptions and a downturn in the steel market, particularly in rebar demand.

To strengthen its financial position, Cognor secured an additional subordinated loan of PLN 87 million in May 2025 and raised PLN 300 million through a private equity issuance later that year. Despite these measures, the company has had to renegotiate terms with financial institutions to address covenant breaches. While no creditors have demanded early repayment, Cognor remains under pressure to improve its financial metrics and operational performance.

External factors, such as rising energy costs due to geopolitical tensions in the Middle East, further threaten the company's margins. Cognor's reliance on energy-intensive electric arc furnaces (EAF) and natural gas for steel production makes it vulnerable to fluctuations in energy prices.

Despite these challenges, Cognor's management remains optimistic about the company's ability to meet its financial obligations and return to profitability, citing ongoing operational improvements and the completion of its modernization projects.

Relevance to Cognor S.A.: This article highlights the financial and operational challenges faced by Cognor Holding S.A., which are directly tied to its vertically integrated steel production model and recent investments in modernizing its facilities. These developments are critical for understanding the company's current position and future prospects in the steel industry.

Cognor Holding S.A. Signs Memorandum of Understanding with Grupa Virtus S.A. for Strategic Collaboration in Recycling and Secondary Materials

On May 20, 2026, Cognor Holding S.A., a leading producer of long steel products in Central Europe, signed a Memorandum of Understanding (MOU) with Grupa Virtus S.A. The agreement outlines the framework for potential collaboration in the recovery, processing, and commercialization of secondary raw materials and industrial by-products. The partnership may include the procurement of recovered materials, joint processing initiatives, quality and technological analysis, supply volume planning, logistical assessments, and the possibility of future commercial or offtake agreements. Additionally, the MOU opens the door for joint industrial or technological projects between the two companies.

The MOU represents an initial step, with detailed terms of cooperation to be negotiated and formalized in separate agreements. Grupa Virtus S.A. views this partnership as a significant opportunity to advance its projects in the recovery and utilization of strategic materials, leveraging Cognor's expertise in the steel and raw materials market.

Relevance to Cognor S.A.: This development aligns with Cognor's vertically integrated business model, which emphasizes scrap collection and recycling as a core component of its operations. The potential collaboration could enhance its raw material supply chain and support its commitment to the circular economy.

Upcoming Dividend Payments and Shareholder Meetings on Warsaw Stock Exchange

The Warsaw Stock Exchange has announced a busy schedule of shareholder meetings and dividend payments for the week of May 18-22, 2026. Key events include ordinary general meetings for companies such as Shoper, Cyberflks, Vercom, and Erbud, as well as extraordinary general meetings for Syn2Bio and Rafamet. Dividend payouts are scheduled for several companies, including Marvipol (PLN 1.11 per share), Votum (PLN 5.00 per share), Onde (PLN 0.31 per share), ErstePL (PLN 49.98 per share), and TSGames (PLN 10.00 per share).

These developments highlight the financial activities and shareholder engagement across various sectors, reflecting the dynamic nature of the Polish capital market.

Relevance to Cognor S.A.: The announcement of dividend payments and shareholder meetings is relevant to Cognor S.A. as it operates within the Polish market, where financial trends and shareholder activities can influence investor sentiment and market dynamics, potentially impacting the company's stock performance and strategic decisions.

Upcoming General Meetings and Dividend Payouts on NewConnect Market

The NewConnect market has announced a series of corporate events scheduled for the week of May 18-22, 2026. Key highlights include extraordinary general meetings for DefenceH, CFSA, EUVIC, and Carlson, addressing matters such as statute amendments, share issuance, and changes in supervisory boards. Additionally, regular general meetings will be held by FHDOM and HIPROMINE. On May 22, POLTRONIC will distribute a dividend of 0.05 PLN per share to its shareholders.

Relevance to Cognor S.A.: The dividend payout by POLTRONIC and corporate governance updates in the NewConnect market reflect broader financial trends and investor sentiment, which could indirectly impact Cognor's market positioning and investment strategies.

Cognor Holding S.A. to Present Financial Results for 2025 and Q1 2026

On Monday, May 18, 2026, Cognor Holding S.A., a leading producer of long steel products in Central Europe, will host a financial results conference at 10:00 AM. The event will focus on the company's performance for the fiscal year 2025 and the first quarter of 2026. Cognor's management is expected to provide insights into the company's operational achievements, financial metrics, and strategic outlook for the upcoming quarters.

The conference comes at a critical time as the steel industry faces challenges such as fluctuating energy prices, evolving EU trade policies, and the implementation of the Carbon Border Adjustment Mechanism (CBAM). Cognor's vertically integrated business model, which includes scrap collection, recycling, and electric arc furnace (EAF) steel production, positions the company to address these challenges effectively.

Relevance to Cognor S.A.: The financial results conference is crucial for stakeholders to understand how Cognor is navigating key industry trends, including energy costs, scrap availability, and regulatory changes, which directly impact its profitability and operational strategy.

Polish Government Awards Steel Supply Tender to Competitor; Cognor S.A. Misses Out

The Polish government has concluded a major tender for the supply of steel products for an upcoming infrastructure project. The contract, valued at approximately €50 million, was awarded to a competing steel producer, which secured the deal by offering the lowest bid of €48 million. Cognor S.A., a key player in the Central European steel market, submitted a bid of €52 million, which was deemed uncompetitive in comparison to the winning offer.

This development marks a setback for Cognor S.A., which has been actively modernizing its production facilities and leveraging its vertically integrated business model to remain competitive in the steel industry. The loss of this tender highlights the challenges posed by pricing pressures in the market, particularly as the company operates within a scrap-based steel production cycle that is sensitive to fluctuations in raw material and energy costs.

Relevance to Cognor S.A.: The tender loss underscores the competitive pressures in the steel industry and the importance of cost efficiency for Cognor S.A., especially given its reliance on scrap-based production and energy-intensive EAF technology.

Deloitte Confirms Financial Stability of Cognor Holding S.A. in 2025 Audit Report

In its independent auditor's report, Deloitte Assurance Polska has confirmed the financial stability and compliance of Cognor Holding S.A.'s consolidated financial statements for the fiscal year ending December 31, 2025. The report highlights that the financial statements provide a clear and fair view of the Group's financial position, performance, and cash flows, in accordance with International Financial Reporting Standards (IFRS) approved by the European Union. The audit also verified compliance with applicable legal regulations and the company's statutes.

The report identified the valuation of tangible fixed assets, particularly those related to the Ferrostal division, as a key audit matter. Despite identifying potential impairment indicators, Deloitte concluded that no impairment write-downs were necessary, as the assets' recoverable value aligned with their book value. The audit also confirmed that Cognor's financial reporting adhered to the European Single Electronic Format (ESEF) requirements.

Additionally, Deloitte stated that the Group's management and supervisory board fulfilled their responsibilities in ensuring compliance with financial reporting standards and corporate governance requirements. The audit firm also confirmed that no prohibited non-audit services were provided to Cognor Holding S.A. or its subsidiaries during the audited period.

Relevance to Cognor S.A.: The audit report underscores Cognor's financial health and compliance, which is critical for maintaining investor confidence and ensuring the company's ability to continue its operations in the competitive steel industry.

Cognor S.A. Reports Financial Losses Amid Market Challenges in 2025

Poraj, Poland – April 30, 2026: Cognor S.A., a leading producer of long steel products in Central Europe, has reported a challenging financial year for 2025, marked by a net loss of PLN 119.4 million, a significant increase from the PLN 54.6 million loss recorded in 2024. The company attributed the downturn to a combination of factors, including a 10.5% decline in overall revenue, amounting to PLN 231.4 million, driven by a price collapse in the rebar market due to dumping practices from China and reduced demand. Despite a 12.9% increase in gross profit from sales, high production costs and ongoing investments further deepened the company's losses.

Steel production in Poland fell by 3% in 2025, reflecting a broader global trend of declining output. Cognor's sales volumes of steel scrap, semi-finished products, and finished goods decreased by 2.5%, while the value of sales dropped by 10.2% year-on-year. The company also faced challenges in maintaining financial covenants tied to its credit agreements, resulting in the reclassification of certain long-term liabilities as short-term. Despite these setbacks, Cognor S.A. successfully secured waivers for covenant breaches from its financial partners, including Banco Santander, mBank, and Alior Bank, ensuring continued access to credit facilities.

On the operational front, Cognor S.A. completed significant investments in its production facilities, including the installation of a new water treatment station and an automated storage system at its Siemianowice Śląskie plant. These upgrades are part of the company's long-term strategy to enhance production efficiency, expand its product portfolio, and reduce costs. The company also emphasized its commitment to sustainability, recycling nearly 800,000 tons of steel scrap annually and implementing measures to reduce CO2 emissions and improve energy efficiency.

Despite the financial challenges, Cognor S.A. remains optimistic about its future, citing plans for further modernization of its machinery and a focus on producing high-margin steel products for the automotive and construction industries. The company also highlighted its strong human capital and long-standing relationships with clients as key assets for its continued growth.

Relevance to Cognor S.A. Business Profile

This article is relevant to Cognor S.A.'s business profile as it highlights the company's financial performance, market challenges, and strategic investments, which are directly tied to its vertically integrated steel production and recycling operations in Central Europe.

Cognor S.A. Seeks Compensation from Danieli Automation S.p.A. Over Faulty Q-One System

Cognor S.A., a subsidiary of Cognor Holding S.A., has initiated legal proceedings against Danieli Automation S.p.A., seeking compensation of PLN 28,584,999.96 for damages caused by the alleged improper execution of a contract. The dispute centers around the Q-One system, an innovative power supply solution for electric arc furnaces, which was installed at Cognor's Stalowa Wola facility. The system suffered a critical failure due to a transformer malfunction, halting operations entirely.

According to Cognor, the malfunction resulted from Danieli's failure to meet technical specifications and deliver a system suited to the company's operational requirements. Danieli reportedly acknowledged responsibility by requesting the return of both the faulty and functional transformers for repairs. Cognor claims this admission further substantiates its case for damages caused by the defective system.

The legal action aims to recover losses incurred due to the disruption in operations and the costs associated with the defective equipment.

Relevance to Cognor S.A.: This development is significant as it impacts Cognor's operational efficiency and financial performance, particularly given its reliance on advanced systems like Q-One for its EAF-based steel production process.