Türkiye Sise Ve Cam Fabrikalari (SISE) Q2 2026 earnings summary

Executive summary

• H1 2026 revenue declined 8% year-on-year to TRY 122–122.3 billion, impacted by inflation, currency depreciation, and global volatility.

• EBITDA was TRY 3.7 billion (3% margin) reported, but adjusted EBITDA reached TRY 17.1 billion (14% margin); net income increased 16% to TRY 16.96 billion.

• Financials are reported under IAS 29 inflation accounting due to Türkiye's hyperinflation, with restated figures as of June 30, 2026.

• Sustainability initiatives advanced, including TSRS-compliant reporting, solar power expansion, and ESG engagement.

• Strategic investments included new coated glass lines in Türkiye and India, and a new glass packaging facility in Hungary.

Financial highlights

• Gross margin was 26–27%, with OpEx-to-sales ratio at 29%, higher year-on-year.

• Adjusted EBITDA margin improved to 14–16%; net debt/EBITDA at 9.6x, net debt/adjusted EBITDA at 3.9x.

• CapEx for H1 was TRY 12 billion ($270 million), with full-year guidance up to $500 million; capex/revenue at 10%.

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

• Net debt stood at TRY 143.3 billion ($3.1 billion); 79% of debt is long-term, 89% in hard currency.

Outlook and guidance

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

• No major new CapEx planned beyond ongoing renewals; focus on market expansion, asset optimization, and sustainability.

• Asset disposals remain an option to boost liquidity, with further sales under consideration.

• Inflation accounting under IAS 29 will continue until Türkiye exits hyperinflation.

• Management prioritizes deleveraging, cash generation, and operational efficiency.