Eregli Demir ve Çelik Fabrikalari (EREGL) investor relations material

Executive summary

• Achieved $3.8 billion revenue, $341 million EBITDA, and $62 million net profit for the first nine months of 2025, with total production and sales both at 5.6 million tons.

• Produced 5.8 million tonnes of crude steel, representing 20% of Türkiye's total crude steel output.

• Sales and production levels normalized, with a year-end sales target of 7.8 million tons.

• Crude steel capacity utilization rose from 75% in Q2 to 90% in Q3, and averaged 81% for 9M 2025.

• Continued investments in modernization, automation, and sustainability across plants.

Financial highlights

• EBITDA per ton reached $68 for the nine-month period; full-year guidance revised to $60–$65 per ton.

• EBITDA margin for 9M 2025 was 8.9%, with net profit margin at 1.6%.

• Free cash flow for 9M 2025 amounted to $734 million, supporting a positive cash position.

• Depreciation totaled $200 million and financial expenses $177 million in nine months.

• Dividend payment of $43 million distributed in Q3; $336 million spent on investment activities in nine months.

Outlook and guidance

• CapEx for 2025 guided at $800–$850 million, with a decrease to $600–$650 million per year for 2026–2027.

• Dividend policy is to pay all distributable profit in cash, subject to leverage and investment needs.

• Sustainability targets include reducing greenhouse gas emissions by 25% by 2030 and 40% by 2040, aiming for net zero by 2050.

• EBITDA per ton for Q4 expected to benefit from new investments, with a $40 per ton contribution anticipated in Q1 2026.

• CapEx may rise again from 2028 with EAF installations.