Cinkarna Celje’s Semi-Annual Business Report for the Period from 1 January 2026 to 30 June 2026

Filling type: Financial report

Cinkarna Celje Remains Profitable, Financially Stable and Development-Focused Despite Increased Market Pressures

In accordance with the Ljubljana Stock Exchange Rules and the applicable legislation CINKARNA Celje, d.d., Kidričeva ulica 26, 3000 Celje hereby publishes Unaudited Report on Cinkarna Celje's Performance for the Period January - June 2026.

The first half of 2026 was marked by a challenging international economic environment characterised by increasing geopolitical risks, mounting supply chain pressures, rising prices of energy and key strategic raw materials, and the intensifying effects of climate extremes. Despite these considerable pressures, Cinkarna Celje maintained profitable operations, financial stability and a clear focus on development. Net profit for the first half of the year exceeded the level planned for the period. In view of increased uncertainty in the raw materials, energy and finished product markets, the Company remains cautious in its assessment of business performance in the second half of the year.

Sales revenue in the first half of the year amounted to EUR 104.5 million, representing a decrease of 6% compared with the corresponding period of the previous year. EBITDA reached EUR 18.2 million, approximately 20% below the level recorded in the corresponding period, while the EBITDA margin stood at 17.5%. Net profit amounted to EUR 8.8 million and was approximately 28% lower than in the first half of 2025. The year-on-year decrease in EBITDA and net profit was primarily attributable to less favourable conditions in the titanium dioxide market, lower average selling prices of titanium dioxide, and higher costs of key input raw materials.

Aleš Skok, President of the Management Board of Cinkarna Celje, commented upon the publication of the results: “Despite weak demand, pressure on selling prices and a substantial increase in the cost of a strategic raw material, we maintained profitable operations and the Company’s financial stability in the first half of the year. Our strong balance sheet enables us to continue making carefully considered investments in efficiency, resilience and long-term competitiveness, even during the more challenging phase of the industrial cycle. We remain prudent in our future decisions, as conditions in the raw materials and energy markets, as well as in international supply flows, remain highly unpredictable.”

Conditions in the European titanium dioxide market remain challenging. Demand continues to be subdued, while the recovery in key industries remains slow and uneven. Following an extended period of pricing pressure, titanium dioxide prices increased in the second quarter, although the increase was driven entirely by rising costs. A more sustained improvement remains dependent on a recovery in end-market demand, which we do not expect in the coming quarters due to continuing geopolitical tensions and prevailing macroeconomic conditions.

Financial stability remains one of Cinkarna Celje’s most important strengths, enabling the Company to pursue long-term, development-focused operations even during periods of more challenging market conditions. A strong capital structure, high liquidity and a low level of financial indebtedness provide the Company with resilience and the necessary capacity to pursue its development objectives.

In the first half of 2026, the Company continued its investment and development activities. It allocated EUR 5.5 million to investments and the acquisition of fixed assets and replacement equipment, while investments of approximately EUR 17 million are planned for the full year. Investment activity is progressing in line with the annual plan, with more intensive implementation scheduled for the second half of the year. The funds were primarily directed towards improving the efficiency of production processes, reducing operating costs, enhancing energy efficiency and product quality, and ensuring compliance with regulatory and safety requirements.

Nikolaja Podgoršek-Selič, Member of the Management Board and Technical Director, stated: “We are directing our investment and development activities towards projects that improve production efficiency, reduce exposure to external risks and strengthen the Company’s competitiveness. These include projects in the areas of water management, reducing the volume of waste gypsum, improving energy efficiency, eliminating bottlenecks and enhancing product quality. By using water, energy and materials more efficiently, we are simultaneously reducing environmental impacts and cost-related risks, while creating the conditions for the stable development of production and its long-term competitiveness in Slovenia and across Europe. We are continuing activities that support the implementation of development, environmental and infrastructure projects that are important for the Company’s safe and competitive operations over the long term.”

The Company is also gradually introducing its renewed corporate visual identity, reflecting its focus on development, technology and sustainability. The new identity connects the Company’s more than 150 years of industrial heritage with its ambition to continue creating value for employees, customers, shareholders and the communities in which it operates.

Further details on the operations of Cinkarna Celje, d. d., in the first half of 2026 are available in the published Unaudited Interim Report on the Operations of the Company for the Period from 1 January 2026 to 30 June 2026, which was approved by the Supervisory Board of Cinkarna Celje, d. d., at its meeting held on 1 September 2026.

Unaudited Report on Cinkarna Celje's Performance for the Period January - June 2026

The report will be available on the company's website for a period of at least 10 years.

Management Board
Cinkarna Celje, d.d.