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Kocaer Steel’s net profit declined by 67% in the first quarter

Kocaer Çelik Sanayi ve Ticaret A.Ş. announced its financial results for the first quarter of 2026 on the Public Disclosure Platform (KAP).

Kocaer Steel’s net profit declined by 67% in the first quarter

Accordingly, the company’s net profit for the period declined by 67% year-on-year to TL 118,835,993. The company had recorded a net profit of TL 356,283,590 in the first three months of 2025.

According to the disclosed data, the company’s revenue decreased by 15% year-on-year to TL 5.055 billion. Despite this, sales volume was maintained at 144,645 tons, with approximately 62% of total sales made to export markets. Domestic sales increased by 37% year-on-year to TL 1.86 billion, while overseas sales were recorded at TL 3.06 billion, affected by global restrictions.

The company’s operating profit declined by 55% in the first quarter to TL 464 million. However, adjusted EBITDA reached TL 715.2 million, and the EBITDA margin rose to 14.1%, above the 2025 average of 12.9%. Despite the impact of inflation accounting practices and increased tax expenses, the company closed the first quarter with a profit.

In terms of financial structure, as of March 31, 2026, total financial debt was reported at TL 8.35 billion. After deducting cash and cash equivalents of TL 5.41 billion, net financial debt stood at TL 2.94 billion. The Net Financial Debt/EBITDA ratio was recorded at 0.90x. The company’s equity increased by 1% quarter-on-quarter to TL 13.7 billion, while total assets were reported at TL 28.65 billion.

Progress in Kocaer Steel’s value-added product strategy also continued. The share of value-added products in the company’s product portfolio, which was approximately 39% in 2023, increased to 43% in 2025 and reached 46.6% in the first quarter of 2026. This increase was attributed to renovation investments completed at the A2 plant in 2023 and at the A1 plant in the first quarter of 2024.

On the energy side, the company stated that it continues to meet 33% of its electricity consumption from its own solar energy production. In addition, with the planned 24 MW geothermal power plant investment in Aydın, the company aims to achieve greater energy independence.

Meanwhile, the company’s management decided to submit a proposal to the General Assembly for the distribution of a total gross cash dividend of TL 325 million from the 2025 profit. The dividend payment is planned to be made on July 1, 2026.

 

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