Eregli Demir ve Çelik Fabrikalari (EREGL) Q4 2025 earnings summary

Executive summary

• Achieved $5.3 billion in revenue, $501 million EBITDA, and $13 million net profit for 2025, with total production and sales of 7.8 million tons.

• Consolidated financials for 2025 were audited and confirmed by an independent auditor's unqualified opinion.

• Crude steel capacity utilization rose to 95% in Q4 2025 after new investments, though annual utilization was 82%.

• Domestic market demand remained strong, with 79% of revenue from domestic sales and export volume at 1.5 million tons (19–20% of total sales).

• The company maintained compliance with corporate governance principles and continued its sustainability and ESG initiatives.

Financial highlights

• EBITDA per ton was $64 in 2025, with guidance of $75-$85 per ton for 2026.

• Net working capital increased due to extended trade payables maturity.

• Net debt/EBITDA remained below 2x at year-end 2025, expected to stay around 2x in 2026; net cash (debt) position at year-end 2025 was $(963) million.

• $43 million dividend paid in Q3; $483 million spent on investments in 2025; capital expenditures for 2025 totaled $775 million.

• EBITDA margin declined to 9.4% in 2025 from 10.4% in 2024; net profit margin fell to 0.2–0.3%.

Outlook and guidance

• EBITDA per ton expected to rise in 2026 due to cost reductions, efficiency gains, and higher HRC prices.

• Sales volumes projected between 8.2-8.4 million tons in 2026, up from 7.8 million tons in 2025.

• CapEx guidance for 2026 is $600 million, with similar levels expected for 2027-2028.

• Net debt/EBITDA targeted to remain around 2x, excluding potential gold mine investments.

• Forward-looking statements are subject to significant uncertainties and may differ materially from estimates due to external factors.