Eregli Demir ve Çelik Fabrikalari (EREGL) Q4 2024 earnings summary

Executive summary

• Achieved $6.225 billion in revenue, $646 million EBITDA, and $411 million net profit for 2024, with total production and sales of 8.1 million tons.

• Crude steel capacity utilization reached 89%, above global and national averages, and up from 82% in 2023.

• Export volume was 1.5 million tons, the second highest in company history, with 80% of revenue from domestic sales.

• Insurance income of $260 million related to earthquake recovery was recognized as a one-off adjustment in net profit.

• Total assets grew to TRY 425.2 billion, and shareholders' equity reached TRY 244.4 billion as of year-end 2024.

Financial highlights

• EBITDA per ton was $83 in 2024; guidance for 2025 is $90-$100 per ton due to cost reductions and efficiency gains.

• EBITDA margin for 2024 was 10.4%, with net profit margin at 6.6%.

• Free cash flow for the year was $106 million, with a net cash (debt) position of $(1,840) million at year-end.

• Capital expenditures totaled $1.1 billion in 2024, with $800-$850 million planned for 2025.

• Gross profit margin was 9.8%, operating profit margin 10.3%, and net profit margin 7.0% for 2024.

Outlook and guidance

• Sales volume target for 2025 is approximately 8.1 million tons, similar to 2024.

• EBITDA per ton expected to gradually improve through 2025, driven by cost reductions from new investments.

• CapEx beyond 2025 expected to be $600-$650 million annually, with flexibility to adjust if market conditions worsen.

• Net Zero Roadmap investment of $3.2 billion by 2030, mostly externally financed, to increase crude steel capacity to 13 million tons.

• Targets a 25% reduction in greenhouse gas emissions by 2030, 40% by 2040, and net zero by 2050.