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Erdemir's net profit decreased by 83% in the first half of the year

Erdemir's net profit for the first half of 2025 decreased by 83% y/y to TRY 1.73 billion.

Erdemir's net profit decreased by 83% in the first half of the year

Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (EREGL) published its financial results for the first half of 2025 on the Public Disclosure Platform (KAP). The company achieved a consolidated net period profit of TRY 1 billion 733 million in the period between January 1 and June 30, 2025. This figure represents a decrease of approximately 83% compared to the same period in 2024. Net profit for the same period last year was announced as TRY 9 billion 987 million.

The company's total revenue for the first six months decreased by 5.2% y/y to TRY 94.96 billion. Gross profit was recorded at TRY 7.6 billion, while operating profit stood at TRY 3.7 billion. Financing expenses reached TRY 7.8 billion in the first half of the year, while EREGL generated TRY 3.5 billion in financing income during the same period. Additionally, a contribution of TRY 435 million was made from monetary position gains. The net profit attributable to the parent company was stated as TRY 1.73 billion.

As of June 30, 2025, Erdemir Group's total equity approached TRY 275 billion, while the size of its cash and cash equivalents was disclosed as TRY 83.8 billion TL. The earnings per share, which was TRY 1.48 in the same period of the previous year due to the net profit of TRY 13.5 billion, decreased to TRY 0.19 this year.

At the general meeting held at the beginning of 2025, it was decided to distribute cash dividends totaling TRY 1.75 billion from the 2024 profits, and these payments were made to investors as of July 2, 2025.

In a statement from the company, it was noted that the decline in profitability was attributed to high interest burdens, falling steel prices, decreasing export revenues, and rising energy costs.

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