Polish national rail freight operator PKP Cargo has booked a net profit in the second quarter of 2025. It marks the first such result since the restructuring of the company.
PKP Cargo achieved an operating profit (EBIT) of 54,7 million Polish złoty (12,8 million euros) over the course of H1 2025. The operator’s net result reached -17,9 million złoty (-4,2 million euros) for the first six months of the year.
The second quarter, by contrast, was positive all across the board: Operating profit was 75,1 million złoty (17,6 million euros), and net profit amounted to 30,7 million złoty (7,2 million euros).
“These results are significantly better than a year ago, when both net profit and EBIT for the first half of 2024 were over minus 450 million złoty (-105 million euros)”, writes PKP Cargo. “The positive impact of the restructuring and optimisation measures undertaken, which are an integral part of the restructuring plan, is also noticeable in the results for the second quarter of 2025.”
Customer contract revenues and asset write-downs
Despite the positive quarterly results, the company remains in a fragile position. PKP Cargo lost some 500 million złoty in customer contract revenues between H1 2024 and H1 2025, for a total of 1,821 billion złoty (428 million euros). That is partially offset by a reduction in employee benefit expenditures (an improvement of around 200 million złoty).
Moreover, a big part of the improvement in the operational results comes from a change in depreciation and impairment losses. In H1 2024, the company wrote down a lot of assets, for a total balance sheet expense of 700 million złoty (164 million euros). In H1 2025, PKP Cargo wrote down just 85,5 million złoty (20 million euros) in assets in H1 2025. The rail freight operator likely won’t be able to count on such a “windfall” again.
PKP Cargo points out that it is seeing the first positive results of its restructuring efforts. The company has established new offices and departments dedicated to particular product groups. “These changes are aimed at improving customer collaboration and shortening decision-making processes in line with market expectations. A regional office was also established, with the goal of intensifying the acquisition of small and medium-sized regional customers”, the operator writes.
Market share increase
As a result, the company has managed to sign 84 new commercial agreements, which “also translate into stabilisation and a gradual improvement in market share in the third quarter of 2025.”
“The latest monthly data published by the Office of Rail Transport show that the PKP Cargo Group recorded a significant increase in its share of transported freight volume month-on-month – from 25.3% in July to nearly 26.7% in August”, the company concluded.