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Introduction & Market Context
Mo-Bruk SA (WSE:MBR), a leader in Poland’s circular economy and waste management sector, presented its H1 2025 financial results on August 21, 2025. The company, which is a constituent of the mWIG40 index, reported solid growth in its core business despite varying performance across its three main segments. Mo-Bruk’s stock has seen recent volatility, closing at 295.5 PLN on August 27, down 1.86% for the day, but remains well above its 52-week low of 256 PLN.
The company operates in three complementary areas of waste processing: incineration of industrial and medical waste, solidification and stabilization of waste, and production of RDF (Refuse-Derived Fuel). This diversified business model has helped Mo-Bruk maintain strong financial performance despite challenges in certain segments.
Quarterly Performance Highlights
Mo-Bruk reported revenue of 127 million PLN for H1 2025, representing a 6% increase compared to the same period last year. The volume of processed waste also grew by 6% year-over-year to 158.1 thousand tons, demonstrating the company’s expanding operational capacity.
As shown in the following chart of revenue and waste volume growth:
EBITDA for H1 2025 reached 52.0 million PLN, an 8% increase from H1 2024, while the EBITDA margin improved significantly to 45% from 40% in the previous year. However, net profit declined to 26.5 million PLN (21% margin) from 30.4 million PLN (25% margin) in H1 2024, primarily due to increased depreciation and financial expenses.
The company’s EBITDA and net profit trends are illustrated in this chart:
Segment performance varied considerably across Mo-Bruk’s business lines. Medical and hazardous waste incineration showed strong results with a 36% increase in sales, driven by a 20% increase in waste volume and higher unit prices. The inorganic waste solidification and stabilization segment saw a more modest 4% sales increase, supported by a 15% increase in waste volume but offset by a 14% decrease in average price per unit. Meanwhile, the RDF segment experienced a 24% decrease in sales due to an 18% reduction in waste volume and a 5% decline in prices, although the company noted a nearly twofold increase in revenue in the second quarter.
The following chart shows the business structure by revenue and waste volume:
Detailed Financial Analysis
Mo-Bruk continues to maintain strong margins in its core business despite cost pressures. The company’s quarterly EBITDA performance shows consistent improvement, with Q2 2025 EBITDA reaching 27.5 million PLN, up from 25.9 million PLN in Q2 2024. The EBITDA margin has stabilized at 45% in both Q1 and Q2 2025, compared to 44% in the same periods of 2024.
The quarterly performance data is illustrated here:
The decline in net profit despite improved EBITDA can be attributed to several factors. Depreciation expenses increased significantly by 6.7 million PLN (+82% year-over-year), primarily due to the 140 million PLN investment in the Karsy incineration plant, updated depreciation rates, and the consolidation of EL-KAJO’s assets. Additionally, net financial expenses increased by 1.5 million PLN year-over-year, including 1.3 million PLN in interest on NFOŚiGW loans and 1.5 million PLN in lease interest for the ORC module in H1 2025.
The company’s cost structure reveals other notable changes:
Mo-Bruk’s financial position remains solid with a net financial debt to EBITDA ratio of 0.7 at the end of June 2025. Total debt stood at 134 million PLN as of June 30, 2025, unchanged from March 31, 2025. The company expects interest expenses to decrease in coming quarters due to anticipated reductions in interest rates and ongoing principal repayments.
Strategic Initiatives
Mo-Bruk is pursuing several strategic initiatives to drive future growth. A key development is the new RDF line in Karsy, which represents a total investment of 20.1 million PLN (13.3 million PLN for the RDF line and 6.8 million PLN for hall modernization). The facility, which began operations in July 2025, has an annual capacity of 150 tons.
The new RDF line in Karsy is shown here:
Another significant growth opportunity comes from "eco-bombs" projects, which involve the removal of hazardous waste from illegal landfills. Recent amendments to the Waste Act allow for state budget funding of these projects, with municipalities eligible for up to 80% of project expenses and maximum support reaching 99% of eligible costs. Mo-Bruk has already secured several tenders in this area, with estimated revenues of 25-31.8 million PLN in 2025 and 18.2-20 million PLN in 2026.
Forward-Looking Statements
Mo-Bruk aims to achieve a 50% EBITDA margin in its core business by the end of 2025, building on the improvement already seen in H1 2025. The company expects the second half of the year to deliver further revenue growth and improved profitability, as indicated in their earnings call where the CFO stated, "The second half of this year should be even better than the first semester of 2025."
The company continues to counteract price pressure across its waste processing spectrum by increasing direct collections from waste producers. Additionally, interest expenses are expected to decrease in coming quarters due to anticipated interest rate reductions and ongoing debt repayments.
Mo-Bruk plans to pay dividends by October 2025, reinforcing its commitment to shareholder returns. With a current dividend yield of 4.53% and a P/E ratio of 15.04x, the stock appears to offer value despite recent price volatility. The company’s strong operational performance, strategic growth initiatives, and solid financial position suggest it is well-positioned to capitalize on opportunities in the waste management sector.
Full presentation:
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