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.

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

• Crude steel capacity utilization rose to 95% in Q4 2025 after new investments, with sales volumes exceeding 8.2 million tons.

• Board and committee structures remained stable with high attendance.

Financial highlights

• EBITDA per ton reached $64 in 2025, with guidance for 2026 set at $75-$85 per ton.

• Net working capital increased due to extended trade payables maturity; net debt/EBITDA stayed below 2x.

• Major non-cash deferred tax expense negatively impacted net profit in Q4.

• Free cash flow for 2025 was $958 million.

• EBITDA margin declined to 9.4% in 2025 from 10.4% in 2024.

Outlook and guidance

• 2026 EBITDA per ton expected to rise due to cost reductions, efficiency gains, and higher HRC prices.

• Sales volumes projected between 8.2-8.4 million tons in 2026.

• CapEx guidance for 2026 is $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.