MERCOR AFTER Q1 2025/2026

SOLID REVENUES TRANSACTION WITH KINGSPAN GROUP CLOSER TO COMPLETION

The MERCOR Group, a leader in the European fire protection market, reported a net profit of PLN 0.7 million for the first quarter of FY 2025/2026 (1 April 2025 to 30 June 2025), with revenue amounting to PLN 124.3 million. EBIT for the period reached nearly PLN 3 million and EBITDA was PLN 7.7 million. The results were affected, among other things, by one-off costs associated with completing the transaction with Kingspan Group. Marketing costs, some of which were one-off, also increased in the first quarter.

It should be noted that June saw the fulfilment of important conditions to the transaction with Kingspan Group, including the issuance of an unconditional clearance by the President of the Office of Competition and Consumer Protection (UOKiK) for the concentration consisting in Kingspan Group’s acquisition of control over Mercor Group companies operating in Poland, the Czech Republic, Slovakia, Romania, the United Kingdom, Ukraine, Spain, and Hungary. This means that the transaction is progressing according to plan.

“We have had a solid start to the 2025/2026 financial year in terms of revenue, which confirms our effectiveness in achieving our goals. The transaction with Kingspan Group is nearing completion as planned. In June, key conditions were met, including obtaining the unconditional clearance of the President of the Office of Competition and Consumer Protection for the concentration consisting in the acquisition by Kingspan Group of control over selected companies of the Mercor Group in Poland and on selected markets. However, this transaction involves a number of one-off costs, which had a negative impact on our net result. These include, among others, costs related to the relocation to the new headquarters and the process of transferring certificates. In addition, at the beginning of the new financial year, we recorded an increase in marketing expenses resulting from work related to the spin-off of part of our operations and the accumulation of industry events,” explains Krzysztof Krempeć, President of the Management Board of MERCOR S.A.

“Our intention is to distribute a significant portion of the proceeds from the transaction to our shareholders. At the same time, we have a clearly defined vision for the Group’s development after the transaction is completed – we will strengthen our key business segments and invest part of the proceeds in innovative safety areas, such as Industry 4.0 and water mist firefighting systems,” says Krzysztof Krempeć, President of the Management Board of MERCOR S.A.

In the first quarter of FY 2025/2026, the Group’s domestic market revenue reached PLN 69.8 million, accounting for 56.2% of total revenue. Sales in foreign markets amounted to PLN 54.5 million, representing 43.8% of total revenue.

MERCOR GROUP RESULTS AFTER Q1 2025/2026:

* In December 2024, the Management Board of MERCOR S.A. revised its previous approach to consolidating OOO Mercor Proof and resolved to transition from full consolidation to using the equity method for the subsidiary. The first periodic report reflecting this change was the report for the first half of FY 2024/2025, covering the period from 1 April to 30 September 2024, with the historical data restated accordingly. Further details on this change in the consolidation approach were disclosed in Current Report No. 66/2024, dated 30 December 2024.

Growing number of secured contracts

In the period from April to June 2025, which marks the first quarter of Mercor Group’s financial year, the Group secured contracts worth a total of PLN 185.5 million – an increase of 25% compared to the same period the previous year.

“In the first month of the new quarter, the value of new orders received by the Mercor Group was about PLN 61.9 million, compared with PLN 55.6 million in the same period last year, an increase of 11%. Cumulatively since the beginning of the financial year, the value of orders we have secured rose by more than 21%. We are glad to see this promising beginning of the financial year,” says Krzysztof Krempeć, President of MERCOR S.A.’s Management Board.