Orange Polska S.A.

Q2 revenue increased 12% year over year, while Q2 EBITDA rose 3%; management noted Q2 2025 included a PLN 75 million positive one-off from the rollout agreement, making the comparison tough. In H1, revenue was up 7.6%, EBITDA was up 6.2%, net income was PLN 576 million, and organic cash flow was close to PLN 0.5 billion, up PLN 150 million or 43% year over year. Economic CapEx was PLN 725 million in H1, down 9% year over year, and management said this was entirely due to PLN 100 million higher proceeds from real estate disposals. For 2026, the company now expects revenue growth of low to mid-single digits, EBITDAaL growth above 6%, and organic cash flow of at least PLN 1.2 billion.

The CEO said the first half showed disciplined execution of the Lead the Future strategy, with profitable growth across telecom, B2B, and wholesale. She highlighted strong mobile execution, fiber expansion, and the first major defense contract as evidence that the company is building new growth platforms. Her tone was upbeat and increasingly confident, saying the strong H1 results and flat indirect costs make management more optimistic on future prospects.

The CFO emphasized that Q2 gains came from both revenue growth and cost savings, with direct margin up more than 6% and indirect costs flat year over year excluding last year’s fiber rollout one-off. He said IT&IS revenues were exceptionally strong but carry lower margins, with EBITDA contribution from those incremental revenues around 10% this quarter; wholesale also benefited from nonrecurrent projects, including over PLN 20 million in Q2, despite a PLN 11 million quarterly headwind from the ended national roaming contract. He also pointed to H1 organic cash flow of close to PLN 0.5 billion, CapEx discipline, and a capex mix focused on access networks, 5G, and IT efficiency.

Analysts focused on whether wholesale’s Q2 lift was temporary, and management said wholesale has a recurring base but is often boosted by nonrecurrent projects, with additional projects already being pursued for H2. Questions also probed data center and AI-related opportunities; management said Orange Polska already has a meaningful colocation business and prefers low-intensity, partner-supported infrastructure rather than large AI-style data center builds. On capital allocation, management said it is not looking outside core telco areas except for selective ICT and fiber infrastructure M&A, and on guidance/dividends it said the 2026 uplift is driven by recurring telecom growth, big deals, and cost transformation, while the next dividend decision will be addressed in February with updated medium-term planning.