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 and strong domestic demand.

• Consolidated financials for 2025 were audited with an unqualified opinion, and the company maintained compliance with corporate governance and ESG initiatives.

• Domestic sales accounted for 79% of revenue, with export volumes at 1.5 million tons (20% of total sales), reflecting a strategic focus on the local market.

• Board and committee structures, as well as executive management, remained stable with regular meetings and high attendance.

Financial highlights

• EBITDA per ton reached $64 in 2025, with guidance for 2026 set at $75-$85 per ton, driven by cost reductions and higher sales volumes.

• Net working capital increased due to extended trade payables maturity; net debt/EBITDA remained below 2x at year-end.

• EBITDA margin declined to 9.4% in 2025 from 10.4% in 2024, and net profit margin fell to 0.2%.

• Free cash flow for 2025 was $958 million.

• $43 million in dividends paid and $483 million spent on investment activities in 2025.

Outlook and guidance

• 2026 EBITDA per ton expected to rise to $75-$85, with full impact of new investments contributing $40 per ton.

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

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

• Dividend policy remains to distribute all distributable profit in cash, subject to leverage and market conditions.

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