Eregli Demir ve Çelik Fabrikalari (EREGL) investor relations material

Executive summary

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

• Commissioned new coke battery and blast furnace, causing temporary output decline but expected to drive efficiency and cost reduction.

• Export volume reached 483,000 tonnes in Q2 and 422,000 tonnes in 6M 2025, with export share rising to 27% of total sales.

• Investment expenditures totaled $521 million as of June 30, 2025.

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

Financial highlights

• EBITDA margin for 6M 2025 was 8.6%, with net profit margin at 1.8%.

• Net sales revenue declined from $3,172 million in Q2 2024 to $2,537 million in 6M 2025.

• EBITDA per ton was $48 for 6M 2025, with full-year 2025 guidance revised to $70 per ton from previous $90–$100.

• Net working capital at June 2025 was $252 million; free cash flow for 6M 2025 was $567 million.

• Net cash (debt) position was $(1,255) million at the end of 6M 2025.

Outlook and guidance

• Production and sales expected to be close to 8 million tonnes for 2025, with capacity utilization rates expected to recover by Q3.

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

• Long-term plan to spend $3.2 billion by 2030, with 70–80% sourced externally.

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

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