Ereğli Demir Çelik Reports 651 Million TL Net Profit in Q3, Faces Profitability Headwinds
Istanbul, Turkey – Ereğli Demir Çelik, a leading Turkish steel producer, announced a net profit of 651 million TL (approximately $20 million USD based on current exchange rates) for the third quarter of 2025, according to company data released today. While representing a profit, the figure marks a significant decline from the 1.155 billion TL ($355 million USD) reported in the same period last year, signaling increasing challenges to the company’s profitability.
The downturn in net profit, despite a modest increase in EBITDA per ton to $68 from $51 in Q1 2025, underscores a broader trend of financial pressure impacting the steel sector. Ereğli Demir Çelik’s performance is a key indicator of Turkey’s industrial health, and the shrinking profit margins-down from a 7.2% net profit margin in the first nine months of 2024 to 1.6% in the same period of 2025-raise concerns about the impact of rising financing costs and depreciation on the company’s bottom line. This situation is notably noteworthy given the company’s previous peak EBITDA of over $400/ton in mid-2022.
The company reported a 24% year-over-year decrease in net debt,reaching 49 billion TL,with a net debt/EBITDA ratio improving slightly from 3.3 to 3.14.Cash reserves increased by 42.6 billion TL, reaching 97.8 billion TL, bolstered by 47.2 billion TL in cash inflow from operating activities. However, investment and financing activities resulted in outflows of 11 billion TL and 3 billion TL, respectively.
In the first nine months of 2025, Ereğli Demir Çelik generated $3.9 billion in sales revenue, down from $4.6 billion in the same period last year. Third-quarter sales revenue reached $1.3 billion, an increase from $1 billion in the previous quarter. Export revenues accounted for $920 million of the total sales in the nine-month period.
Company officials attribute the contraction in net profit to increased financial burdens and depreciation pressures, rather than core business performance, noting that the EBITDA margin was maintained.higher financing expenses ($−177 million USD) and increased depreciation ($−200 million USD) were cited as key factors suppressing net profit. The company will likely focus on managing these costs and optimizing operational efficiency to restore profitability in future periods.
