Bumech Group, which operates the Silesia coal mine in Czechowice-Dziedzice, reported a net profit of more than PLN 6.5 million and an operating profit of PLN 24.7 million in the first half of 2025. This marks a sharp turnaround from losses of PLN 55.8 million and PLN 65.4 million, respectively, in the same period of 2024. EBITDA for the period reached PLN 39 million.
The strong results came despite a decline in revenues to PLN 198.7 million. This underlines the impact of the company’s decisive cost-cutting measures and restructuring strategy. Thanks to these actions, the Group generated positive net operating cash flows of PLN 25.2 million and total net cash flows of PLN 20.1 million. At the same time, Bumech continues to diversify its business – in the third quarter it signed a cooperation agreement with South Africa’s OTT Technologies to develop and produce armored vehicles for the European market.
“The first-half results confirm that the restructuring we have consistently implemented is delivering tangible effects. From deep losses last year, we have returned to positive net and operating results and significantly improved cash flows. This shows that our chosen corrective path is the right one and stabilizes the Group’s finances despite challenging market conditions. At the same time, we continue to seek new opportunities for commercial use of our infrastructure, which may become an additional source of profitability in the future,” said Andrzej Bukowczyk, CEO of PG Silesia.
Restructuring Brings Financial Stability
As part of ongoing restructuring proceedings, PG Silesia has taken steps to improve operational efficiency and secure liquidity. These measures have clearly improved financial flows, with PLN 25.2 million in positive operating cash flow (compared to negative PLN 1.2 million in H1 2024) and PLN 20.1 million in total net cash flow (versus negative PLN 42.6 million in H1 2024).
PG Silesia, a Bumech subsidiary, filed for restructuring in October 2024, with proceedings formally opened on November 27. Despite the restructuring process, the company continues mining operations, supported by the strong demand for its high-quality coal. New mining fronts are being launched gradually, based on geological analyses, investment needs, and market prices. Current deposits serve the heating coal market, which is characterized by stable demand and profitability.
In June 2025, the company presented a restructuring plan focused on improving profitability, ensuring growth, and meeting all financial obligations. The strategy for 2025–2030 includes continued single-longwall mining, preparation of new faces, and minimizing downtime between transitions.
New Defense Business with OTT Technologies
Seeking to diversify its business model, Bumech has entered the defense sector. In July 2025, the company signed a letter of intent with South Africa’s OTT Technologies, followed by a cooperation agreement on September 4. The partnership covers the development and production of armored vehicles for the European market.
The agreement provides for the localization and adaptation of OTT products for Europe, enabling manufacturing, sales, and distribution in Central Europe and Scandinavia, with potential expansion to other markets. Initial assembly will use OTT-supplied components, but eventually at least 70% of parts will be sourced from the European Union.
Bumech’s defense offering will include military vehicles, support vehicles for uniformed services, armored cabins, command and technical support vehicles, and anti-drone protection systems.
“We are demonstrating clear determination in building this new business segment. The agreement with OTT Technologies is not just a declaration but a concrete project – preparations for armored vehicle production have already begun at our plant. This proves the initiative is a strategic priority. Our goal is to begin assembly in the fourth quarter of this year,” said Michał Kończak, Vice President of Bumech.
Under the agreement, Bumech is responsible for financing, production, and sales processes. The deal runs until the end of 2027, with an option for automatic extension if conditions are met.
Source: CEO.com.pl
