Erdemir Group, one of Turkey’s leading steelmakers, reported a steep decline in profitability in 2025, according to its latest financial results.
The company’s net profit fell sharply to TRY 694.3 mln (USD 15.8 mln) from TRY 14.2 bln a year earlier. In contrast, sales revenue increased 2.38pct YoY to TRY 208.9 bln (USD 4.77 bln).
Management attributed the weaker bottom line mainly to non-operational factors. Although EBITDA improved, profitability was weighed down by high depreciation charges, elevated financial expenses and the impact of legislative amendments that cancelled inflation accounting. The reversal of previously recorded deferred tax income following the regulatory change negatively affected fourth-quarter earnings.
Crude steel production declined 12pct YoY to 8.1 mln tons. Output at the Iskenderun plant rose 3.8pct YoY to 5.5 mln tons, while production at the Eregli facility fell 20.2pct YoY to 1.7 mln tons. Capacity utilization decreased to 85pct, compared with 89pct in 2024.
Flat steel production slipped 3.7pct YoY to 6.85 mln tons, while long steel output declined 3.83pct to 928,000 tons.
Flat product sales totaled 6.9 mln tons, down 2.75pct YoY, with domestic sales accounting for 5.4 mln tons, a 3.6pct YoY decline. Long product sales reached 931,000 tons, compared with 957,000 tons in 2024, with the bulk sold in the domestic market.
In 2025, the group exported 1.55 mln tons of finished products, including 1.53 mln tons of flat steel and 23,000 tons of long products, representing around 20pct of total sales. Exports covered 34 countries for flat products and seven countries for long products.
Looking ahead, Erdemir expects earnings to improve in 2026, supported by cost reductions, efficiency gains from newly commissioned facilities, firmer hot-rolled coil prices and higher sales volumes.
Erdemir Group’s main products include billet, slab, wire rod, hot rolled, cold rolled, and coated steel products.
1 USD / 43.7 TRY
