Cognor metals sees chance for orders growth from Polish and European ammunition manufacturers

"There is a huge trend, an incredible, I would even say growing trend, when it comes to ammunition production, and consequently the sale of our steel for these needs should multiply in the coming years," said Krzysztof Zola, Cognor's CFO, during the press conference.

The company expects a significant rise in orders for 155mm ammunition steel from Polish and European manufacturers. Cognor currently supplies 2,000 tons annually to the Polish Armaments Group (PGZ), with plans to increase to 13,000 tons after PGZ’s investment is completed.

The company is in talks and making trial deliveries for several European ammunition makers. Cognor Holding estimates annual demand for steel for 155mm shells in Europe at 175,000 tons starting in 2027.

The company’s presentation highlighted that modernizing the HSJ steel mill in Stalowa Wola is essential to take part in the growing orders.

"As far as demand and the market are concerned, both defense issues and very large infrastructure investments in Poland and Europe give us grounds to see the future positively," Zola said.

"This is almost 20 million tons on the scale of Europe, which is a lot. And the imposition of tariffs 100 percent higher than before, that is from 25 percent to 50 percent on steel that wants to enter the European Union above this quota," said the CEO, Przemyslaw Sztuczkowski.

As noted by the CFO, regarding the outlook for the fourth quarter, macro trends remain unchanged and favour the group.

"We expect funds from the national recovery plan KPO, we anticipate sales of the first test products, which we have already produced in Siemianowice Slaskie, and this will cause a positive earnings effect in the fourth quarter of this year," said Cognor's CFO.

Zola pointed out the most important factor as the increasing use of production capacities.

"We still expect even higher levels in Cracow, but above all - Siemianowice Slaskie," Zola said.

At the end of October, Cognor announced plans to issue up to 60 million shares, aiming to raise about PLN 350 mln (EUR 76.9 mln) from the issuance.

The company said the proceeds will be used, among other things, to enhance the production technology of special steels due to the significant increase in demand from its current ammunition customers, including those producing 155mm calibre artillery shells.

Shareholders are expected to approve the issue during the general meeting convened for November 20.

The attributable net loss in the third quarter of 2025 amounted to PLN 24.7 million (EUR 5.4 mln), compared to a loss of PLN 28.6 million (EUR 6.3 mln) a year earlier.

The company’s revenues in the third quarter of 2025 were PLN 496.3 million (EUR 109.0 mln), similar to those in the same period last year.

Gross profit on sales amounted to PLN 10.9 million (EUR 2.4 mln), compared to PLN 1.7 million (EUR 0.37 mln) in the third quarter of 2024, and operating loss was PLN 19.4 million (EUR 4.3 mln), compared to a loss of PLN 19.8 million (EUR 4.3 mln) a year earlier.

"In summary, the result at first glance does not look very encouraging, but there are many elements that indicate progress we have made. The year-on-year results are better. Year-on-previous-quarter results are worse due to seasonal phenomena related to repairs and the costs of repairs in this period (...)" said a management board member.

gaw/ nl/