Eregli Demir ve Çelik Fabrikalari (EREGL) Q2 2025 earnings summary

Executive summary

• Achieved $2.54 billion revenue, $217 million EBITDA, and $46 million net profit in H1 2025, with total production of 3.6 million tons and total sales of 3.7 million tons.

• Produced 3.7 million tonnes of crude steel in H1 2025, accounting for 20% of Türkiye's total output.

• Group's total investment expenditures reached $521 million as of June 30, 2025.

• Commissioned new coke battery and blast furnace, completing the current investment package.

• Maintained compliance with Corporate Governance Principles and continued systematic risk management.

Financial highlights

• EBITDA margin for H1 2025 was 8.6%, with net profit margin at 1.8%.

• EBITDA per ton for H1 2025 was $48; full-year guidance revised to $70 per ton from $90–$100.

• Depreciation was $129 million and financial expenses $117 million in six months.

• Net sales revenue declined from $3,172 million in Q2 2024 to $2,537 million in H1 2025.

• Gross profit margin dropped to 8.1% from 13.2% year-over-year.

Outlook and guidance

• Expect capacity utilization rates to recover by Q3.

• Total sales and production expected to be close to 8 million tons for 2025.

• CapEx for 2025 projected at $800–$850 million, potentially rising to $1 billion if gold mine reserve is significant.

• Sustainability targets include reducing greenhouse gas emissions by 25% by 2030 and 40% by 2040, aiming for net zero by 2050.

• Dividend distribution policy remains to pay all distributable profit in cash, subject to financial leverage and investment needs.