Key Highlights from the 2025 Financial Reports
• Financial Performance: Erdemir reported a consolidated revenue of 208,909,904 thousand TL for 2025, a slight increase compared to 204,059,940 thousand TL in 2024. However, the Net Period Profit significantly decreased to 694,345 thousand TL, down from over 14 million TL the previous year. The EBITDA (FAVÖK) reached 19,733,175 thousand TL with an EBITDA margin of 9.4%.
• Operational Output: The Group produced 8.1 million tons of crude steel in 2025. Production at the Ereğli facilities saw a 20.2% decrease, while the İskenderun facilities increased production by 3.8%. The capacity utilization rate for crude steel was 85%.
• Sales and Exports: Total flat product sales reached 6.9 million tons, and long product sales were 931 thousand tons. Erdemir exported 1,555 thousand tons of finished products, representing 20% of total sales, reaching 34 countries for flat products and 7 countries for long products.
• Investment Strategy: As of the reporting date, the Group recorded 775 million USD in investment accruals in its consolidated financial statements. Key projects included the completion of the 4th Coke Battery and the 1st New Blast Furnace at Isdemir, while engineering work continues on a 2nd Hot Rolling Mill.
• Dividends: Following the Ordinary General Assembly on March 26, 2025, Erdemir distributed a cash dividend of 1,750,000 thousand TL from 2024 profits, amounting to 0.25 TL per share.
• Sustainability and R&D: Erdemir continues to operate under its Net Zero Roadmap, focusing on energy efficiency and carbon reduction. The company’s R&D center, specialized in five main areas including raw materials and steel production, supports these technological transformations.
• Workforce: As of December 31, 2025, the Group employed a total of 12,824 personnel.

The $775 Million Gamble: Why Turkey’s Steel Giant is Betting on AI to Survive a Global Slump

Introduction: The Steel Giant at a Crossroads

In the machinery of a national economy, the steel industry is far more than a simple sector—it is the locomotive that pulls the weight of the construction, automotive, and manufacturing industries. At the controls of this engine is Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir), Turkey’s first and only integrated flat steel producer.

For the Group, 2025 was a “stress test in real-time.” While the global market faced a punishing “chill,” Erdemir didn’t just hunker down; it performed open-heart surgery on its own operations. It was a year defined by a high-stakes dual-track strategy: absorbing a near-total erasure of profit margins while simultaneously doubling down on a $775 million investment in technology and digital literacy.

The Invisible Hand: A “National DNA” Insurance Policy

Erdemir is not merely a publicly traded entity; it is a strategic pillar with a unique “National DNA.” This is crystallized in the “A Group” share held by the Privatization Administration. While ATAER Holding A.Ş.—the Group’s parent—demonstrated its own confidence by increasing its stake from 49.29% to 49.54% during the 2025 bear market, the state’s single “Golden Share” remains the ultimate safeguard.

This share acts as a national insurance policy, granting veto power over any decision that might compromise Turkey’s industrial capacity. It prevents the company from simply “closing up shop” or shrinking during lean years.

“Decisions regarding the closing, selling, limiting by any encumbrance, or reducing the capacity of any of the integrated steel production facilities and mining facilities owned by the Company and/or its subsidiaries… can only be taken with the affirmative vote of the usufruct right holder representing the A Group shares. Otherwise, the decisions taken are invalid.”

A $775 Million Bet on Tomorrow

While competitors might have retreated during the 2025 downturn, Erdemir went on the offensive. The Group recorded a staggering $775 million USD in investment accruals. This wasn’t just “maintenance spending”; it was a targeted modernization of “old world” assets to prepare them for a high-efficiency future.

The capital was funneled into heavy-duty projects including the commissioning of the 4th Coke Battery, work on the 2nd Hot Rolling Mill, and the 2nd Blast Furnace Stove Modernization. By pouring cash into these projects, Erdemir is trading short-term liquidity for a long-term competitive edge in a lower-carbon, high-efficiency global market.

The Profit Squeeze: Operating at the Edge

The 2025 financial landscape was a battlefield. World ham steel production contracted by 2.0%, and the resulting margin compression was brutal. Using a representative exchange rate of 1 USD = 35 TRY, the scale of the pressure becomes clear:

• Revenue (Hasılat): ~$5.97 Billion USD
• Total Assets (Toplam Varlıklar): ~$15.96 Billion USD
• Net Profit (Net Dönem Karı): ~$19.84 Million USD

The most jarring data point is the collapse of the net profit margin, which plummeted from 7.0% in 2024 to a razor-thin 0.3% in 2025. In effect, Erdemir spent the year operating at a virtual break-even point. This was a tactical sacrifice: the Group chose to absorb the global “market chill” and maintain its massive $775 million investment engine rather than halting its evolution to save the bottom line.

From Hard Hats to AI: The Digital Steelworker

Erdemir is currently bridging the gap between heavy industry and the Silicon Valley mindset. Through its “Digital Transformation Academy” and the “OMM İş’te Dönüşüm” (Transformation at Work) program, the Group is actively minting “Digital Ambassadors.” These workers are being trained in AI and advanced data analytics to optimize the very blast furnaces they operate.

This digital shift is human-centric. The company has deployed high-tech crane simulators to train operators in interactive, risk-free environments. Perhaps more telling of its long-term vision is Erdemir’s investment in the next generation: the Group recently donated an induction furnace to the Ereğli Mesleki ve Teknik Anadolu Lisesi (High School), ensuring that its future workforce is learning on the same high-tech equipment they will eventually manage.

A Tale of Two Cities: Why the Production Drop was a Win

At first glance, the production data for 2025 looks like a retreat for the Group’s namesake plant. However, a strategic analyst sees a different story: the production “loss” at Ereğli was actually a planned “investment.”

• Ereğli Plant: -20.2% production drop (2.6 million tons)
• İsdemir Plant: +3.8% production increase (5.5 million tons)

The divergence is no accident. The Group shifted its primary production weight to the İsdemir plant to allow the Ereğli facility to undergo the massive modernization projects mentioned earlier—such as the stove and battery upgrades. This tactical pivot ensured that while the “locomotive” kept moving, the individual “cars” were being upgraded for higher speeds.

Conclusion: Steely Resolve for 2026

Despite the profit squeeze, Erdemir remains an titan, accounting for 21% of Turkey’s total ham steel production in 2025. The Group’s philosophy—“optimum cost and maximum efficiency with high-quality production”—was tested to the limit this year.

As we look toward 2026, the central question remains: will the $775 million USD gamble pay off? By digitalizing its workforce and modernizing its core, Erdemir has positioned itself to be the first to catch the wind when the global steel market finally recovers.

The Group’s path forward is governed by more than just numbers; it is anchored in the principles of its Corporate Management Compliance Statement:

“The Company has adopted the concepts of ‘equality,’ ‘transparency,’ ‘accountability,’ and ‘responsibility,’ which form the basis of corporate management, in its activities…”

Annual Briefing Report: Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (2025)

Executive Summary

This briefing document synthesizes the operational and financial performance of Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir) and its subsidiaries (the “Group”) for the fiscal year ending December 31, 2025.

The Group maintains its position as Turkey’s premier integrated flat steel producer, accounting for 21% of the nation’s total crude steel production in 2025. Despite global headwinds in the steel sector—characterized by a 2.0% decline in world crude steel production—the Group achieved a total crude steel output of 8.1 million tons.

Financial results show a consolidated revenue of approximately 6,144.41 million**, with a net profit for the period of **20.42 million. The Group continues an aggressive investment strategy, with $775 million in investment accruals reported. Governance remains stable under the majority ownership of ATAER Holding A.Ş. (a subsidiary of OYAK), though the Turkish Privatization Administration retains significant veto power through a privileged “Class A” share.

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1. Corporate Profile and Ownership Structure

1.1 Ownership Distribution

Erdemir operates with a total paid-in capital of $205.88 million (7,000,000 thousand TRY). The capital structure as of December 31, 2025, is as follows:

Note: ATAER Holding A.Ş. increased its stake from 49.29% to 49.54% following a purchase of 18 million nominal shares on June 17, 2025.

1.2 Privileged Shares (Class A)

The Group’s articles of association specify two share classes: A and B. A single “Class A” share is held by the Turkish Privatization Administration (ÖİB). This share grants extensive veto rights and oversight, including:

• The right to nominate one member of the Board of Directors.
• Mandatory affirmative vote for decisions regarding the closure, sale, merger, or capacity reduction of integrated steel or mining facilities.
• Veto power over any amendments to the articles of association affecting investment and employment commitments.

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2. Governance and Management

2.1 Board of Directors

The Board oversees the Group’s strategic direction. As of the reporting date, the board is led by OYTAŞ İç ve Dış Ticaret A.Ş. (represented by Murat Yalçıntaş). The board held seven meetings in 2025.

Key Board Committees:

• Audit Committee: Met 4 times in 2025.
• Early Detection of Risk Committee: Met 6 times in 2025.
• Corporate Governance Committee: Met 4 times in 2025.

2.2 Senior Management

The executive leadership includes the Chairman, Vice-Chairman, General Manager, and Assistant General Managers. Notable appointments in 2025 include:

• Ahmet Taşkın: Vice Chairman and Managing Director (Appointed Aug 5, 2025).
• Şaban Yazıcı: General Manager (Appointed Aug 23, 2025).

2.3 Management Remuneration

For the 2025 period, the Group provided a total of 6,957.15 thousand** in short-term benefits (salaries, premiums, etc.) to senior management, a significant increase from the **4,326.91 thousand provided in 2024.

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3. Financial Performance Analysis

The Group’s financial data for 2025 reflects a challenging economic environment for the steel industry, with margins narrowing compared to the previous year.

3.1 Consolidated Financial Position

3.2 Income Statement Highlights

Profitability Ratios:

• Gross Profit Margin: 8.9% (vs. 9.8% in 2024).
• EBITDA Margin: 9.4% (vs. 10.4% in 2024).
• Net Period Profit Margin: 0.3% (vs. 7.0% in 2024).

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4. Operational Performance and Sectoral Context

4.1 Production and Sales

The Group remains the only integrated flat steel producer in Turkey.

• Crude Steel Production: 8.1 million tons.
  • Erdemir Facilities: 2.6 million tons (20.2% decrease YoY).
  • İsdemir Facilities: 5.5 million tons (3.8% increase YoY).
• Capacity Utilization: Liquid steel at 86%; Crude steel at 85%.
• Sales Volume: 6.9 million tons of flat products and 931 thousand tons of long products.
• Exports: 1.55 million tons of finished products (20% of total sales), reaching 34 countries for flat products and 7 countries for long products.

4.2 Sectoral Analysis

• Global: World crude steel production fell 2% in 2025 to 1.85 billion tons. China’s production fell 10.3% in December 2025.
• Domestic: Turkey’s total production grew 3.3% in 2025 to 38.1 million tons. Erdemir Group’s production accounted for roughly one-fifth of the national output.

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5. Investment, R&D, and Sustainability

5.1 Key Investment Projects

The Group reported $775 million in investment accruals. Major ongoing and completed projects include:

• Erdemir: 4th Coke Battery, new charging cranes for the steel plant, and modernization of the 2nd High Furnace stoves.
• İsdemir: New High Furnace, 3rd Steam Boiler retubing, and port capacity expansion/earthquake damage repair.
• New Ventures: Ongoing work on the 2nd Hot Rolling Mill and modernization of the 1st and 2nd Turbo Generators.

5.2 Research and Development

R&D activities are centralized at the Erdemir R&D Center, which focuses on five areas: raw materials/iron production, steel production/casting, hot/cold products, energy, and environment.

• Financial Support: The Group utilized $4,440.18 thousand in R&D support premiums as tax deductions in 2025.
• Technical Progress: 2,946 certification processes were completed in 2025.

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6. Risk Management Framework

The Group utilizes a systematic model to manage strategic, operational, and financial risks:

• Market/Price Risk: Managed through derivative “hedge” transactions to mitigate volatility in raw material (coal/ore) and steel prices.
• Currency Risk: Managed by utilizing derivatives for transactions conducted outside the functional currency (USD for most units).
• Liquidity Risk: Mitigated through cash flow projections and maintaining access to national/international financing sources.
• Counterparty Risk: Protected via the Direct Debiting System (DBS) and credit insurance for nearly all receivables.

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7. Human Resources and Social Responsibility

7.1 Workforce and Labor Relations

As of December 31, 2025, the Group employed 12,824 people (8,907 hourly and 3,917 monthly salaried).

• Labor Agreements: A new 30th Term Collective Labor Agreement was signed with Türk Metal Sendikası (effective until August 2026). At İsdemir, a 29th Term agreement with Özçelik-İş is effective until December 2026.

7.2 Social Contributions and Donations

In 2025, the Group contributed a total of $2,030.79 thousand in donations:

• Education/Training: $555.24 thousand.
• Public Cooperation: $646.21 thousand.
• Charity/Volunteering: $654.76 thousand.
• Sporting Activities: $111.65 thousand.

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8. Subsidiary and Associate Overview

The Group includes several key subsidiaries with varying functional currencies:

• İskenderun Demir ve Çelik A.Ş. (İsdemir): Integrated steel production (94.87% ownership).
• Erdemir Madencilik (Ermaden): Iron ore and pellet production (90% ownership).
• Erdemir Romania S.R.L.: Electrical steel production (100% ownership).
• Kümaş Manyezit Sanayi A.Ş.: Magnesite ore and refractories (100% ownership).
• Erdemir Enerji: Renewable energy production (100% ownership).

Calculations based on an assumed exchange rate for the 2025 period of 1 USD = 34.00 TRY.