Eregli Demir ve Çelik Fabrikalari (EREGL) investor relations material

Executive summary

• Achieved $2.8 billion revenue, $281 million EBITDA, and $201 million net profit in H1 2026, driven by strong domestic demand and high capacity utilization.

• Crude steel production in Turkey rose 8% year-over-year to 19.8 million tons, with the group accounting for 23% of national output and maintaining its position as Europe's largest producer.

• Total production reached 4.6 million tons and sales 4.2 million tons in H1 2026, with a target of over 8.2 million tons for the full year.

• Board and executive management structure updated in March 2026; collective labor agreements signed, and R&D focused on efficiency and sustainability.

• Ongoing investments in plant modernization, capacity expansion, and sustainability projects at both Erdemir and İsdemir plants.

Financial highlights

• EBITDA per ton was $75 in Q2, with full-year guidance of $75–$85 per ton; EBITDA margin for H1 2026 was 10.0%.

• Deferred tax income from a regulatory change contributed a one-off $202 million tax income, boosting net profit.

• Depreciation was $164 million and financial expenses $104 million in H1 2026.

• Free cash flow for H1 2026 was $277 million; net working capital at June 2026 was $1,265 million.

• Revenue for H1 2026 reached TRY 124.6 billion, with net profit at TRY 9.2 billion and EBITDA at TRY 12.5 billion.

Outlook and guidance

• Expect higher EBITDA per ton in Q3 due to increasing HRC prices and sales volumes; sales volumes for Q3 expected to be around 2.1 million tons.

• Net Debt/EBITDA expected not to exceed 2x in 2026.

• CapEx for 2026 projected at $600 million, with $225 million already spent in H1.

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

• Dividend policy prioritizes distributing all distributable profit in cash, with TRY 0.55 per share approved from 2025 net profit.