PKP CARGO SA Capital Group, currently undergoing restructuring proceedings, reported a net loss of approximately EUR 562 million in 2024. Sales revenues declined by 18.8% compared to the previous year, totaling EUR 1.04 billion, down from EUR 1.28 billion in 2023. EBITDA also saw a significant decrease, from EUR 252 million in 2023 to approximately EUR 70 million in 2024.
The financial results were primarily impacted by impairment losses totaling EUR 490 million, associated mainly with rolling stock assets no longer adequately matching current market demands.
The coal wagon problem
The company attributed the deterioration in performance to several years of underinvestment and a prolonged reliance on coal freight. Around 75% of its wagon fleet consists of coal wagons, though these account for only 30% of the current transport volume. The mismatch between asset composition and market needs led to oversized resources, fixed costs, and declining margins in an increasingly competitive and shrinking freight transport market.
Over the past few years, PKP CARGO has seen a reduction of around 30% in its share of transport work within the Polish rail market. The shift in market dynamics and competitive pressure exposed structural weaknesses in the company’s operations and resource management.
Restructuring actions
The company initiated court-led restructuring proceedings on June 27, 2024, with the aim of improving its financial standing and continuing operations. Key restructuring actions underway include workforce optimization, termination of unneeded lease agreements, asset sales, reductions in capital expenditure, and a revision of organizational structure.
A detailed restructuring plan is scheduled for presentation in June 2025. The absence of this plan has led the company’s auditor to withhold an opinion on the 2024 financial report, citing insufficient documentation rather than issuing a negative judgment.
Market reorientation
PKP CARGO and its Capital Group have begun efforts to rebuild their position in the freight transport sector. This includes attempts to re-establish client relationships disrupted by the prior focus on coal transport and to diversify operations through cooperation with foreign subsidiaries. The company reports having gained forty new customers over the past few months and is working on establishing new transport corridors.
These actions are part of a broader restructuring approach intended to adapt the company’s resources and commercial strategy to the current market landscape.
