Türkiye Sise Ve Cam Fabrikalari (SISE) investor relations material

Executive summary

• Consolidated revenue for H1 2026 was TRY 122.3 billion, down 8% year-on-year, reflecting contraction across most segments and inflation/currency headwinds.

• EBITDA was TRY 3.65 billion (3% margin), significantly lower due to non-recurring investment property losses and market headwinds, while adjusted EBITDA (excluding inflation and non-cash items) was TRY 17.1 billion (14% margin).

• Net profit attributable to equity holders was TRY 5.37 billion, with parent-only net income flat at TRY 4.4 billion, supported by lower net financing expenses and monetary gains.

• Total comprehensive loss was TRY 16.8 billion, mainly due to significant negative currency translation and revaluation effects.

• International sales accounted for 61% of revenue, with Europe as the largest non-Türkiye market and ongoing global expansion.

Financial highlights

• Gross margin was 27%, with gross profit at TRY 32.7 billion; OpEx-to-sales ratio increased to 29% year-on-year.

• Non-recurring items (impairment, revaluation losses, project terminations) had a negative TRY 7.4 billion impact on EBITDA.

• Net debt stood at $3.1 billion (TRY 143.3 billion), with a net leverage ratio of 9.6x (3.9x adjusted for monetary gains/losses).

• CapEx for H1 2026 was TRY 12 billion ($270 million), down 38% year-on-year, with capex/revenue at 10%.

• Free cash flow was negative TRY 28 billion, mainly due to working capital needs and investment outflows.

Outlook and guidance

• Margin recovery expected in H2 2026 as energy costs stabilize and new facilities ramp up.

• No major new CapEx planned; focus on operational efficiency, sustainability, and market expansion.

• Asset disposals are under consideration to strengthen liquidity, but no urgent sales planned.

• Management expects gradual improvement in EBITDA as demand picks up and investments contribute.

• Reduced corporate tax rate for manufacturing activities starting 2027 will positively impact deferred tax assets.