This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
Interactive chart Two years ago it was 2.8% - the lowest figure since 2009, excluding the onset of the pandemic. Even so, the current level remains slightly below the long-term average of around 4.15%. It is worth remembering that these figures apply to large companies; profitability is lower among smaller firms.
Companies are gradually rebuilding margins after that sharp downturn. Before it, however, profitability had been at record highs for three years, largely because high inflation allowed firms to raise prices faster than costs increased. Eventually, though, costs – especially wages – outpaced revenue growth, triggering the collapse in profitability mentioned above.
The improvement in profitability in the first quarter of this year was also driven by revenues rising faster than costs. Revenues at the more than 17,000 surveyed companies increased by 5.7% year on year, while costs rose by 4.9%. Net financial results – the combined profits of companies minus their combined losses – rose by 20.5%.
Higher profitability has also translated into stronger investment activity. In the first quarter of 2026, capital expenditure increased by 8.7% year on year. The sharpest growth was recorded in transport equipment, though investment in machinery and buildings also increased.
There will be no second bonanza
What comes next? On the one hand, companies may use rising inflation to push through price increases, thereby improving profitability – much as they did in 2021–23. The main argument supporting this view is that during periods of elevated inflation, customers are more willing to accept higher prices. Companies assume they will ultimately be able to “pass on” higher costs to consumers. For some households, meanwhile, the impact of rising prices is softened by wage increases, including hikes to the minimum wage, as was the case in previous years. Others simply accept higher prices almost inadvertently, overwhelmed by the sheer pace of increases.
On the other hand, this time the mechanism may play out differently and may not necessarily lead to higher profitability. One reason is that inflation will be far lower. Price growth is expected to remain in single digits, meaning there will not be the same widespread repricing seen previously. At the same time, households have become more price-sensitive, especially as wage growth across the economy is slowing.
In my view, companies will not manage to repeat the sharp jump in profitability seen before. Some firms, particularly those with stronger market positions and customers who are less sensitive to prices, may still be able to grow revenues faster than costs. But overall, there will be no repeat of the last bonanza.