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

Market and industry conditions

• Coking coal prices ranged from $170 to $196/ton in Q2, supported by Chinese production and supply disruptions in Australia; iron ore prices fluctuated between $92 and $105/ton, driven by global trade tensions and Chinese economic uncertainty.

• Global HRC prices trended downward due to weak demand, cost pressures, and protectionist trade policies; European CBAM and restocking may support prices post-summer.

• Turkey's steel production rose 2% and consumption fell 3% in H1 2025; exports grew 18% to 7.7 million tons, imports up 13% to 9.3 million tons, mainly from higher semi-finished imports.

• Turkey holds the largest EU quota for hot-rolled coil, but evolving policies may restrict future exports.

• Global crude steel production fell 2.2% year-over-year in H1 2025; Türkiye's output down 1.7%.

Executive summary

• Achieved $2,537 million in revenue and $217 million EBITDA for the first six months of 2025, with net profit at $46 million attributable to equity holders.

• 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 USD 521 million as of June 30, 2025.

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

Financial highlights

• Revenue reached $2.5 billion, EBITDA $217 million, and net profit $46 million in H1 2025.

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

• EBITDA per ton for H1 was $64; revised full-year guidance to $70 per ton due to clearer H2 outlook.

• Depreciation was $129 million and financial expenses $117 million in H1; $10 million inventory provision release excluded from EBITDA.

• Capital expenditures for H1 2025 totaled $521 million.