Erdemir Q1 2025: EBITDA Margins Halve Amid Cost Pressures and Lower Steel Output

1 2025 Performance Summary – EBITDA per Ton, Market & Operations

EBITDA per ton dropped sharply from USD 117/ton in Q1 2024 to USD 59/ton in Q1 2025, reflecting a ~50% YoY margin contraction despite stable sales volume (~1.9 Mt). The decline was driven by weaker steel prices and rising input costs, with gross margin halving from 14.1% to 7.1%.

Steel production and utilization rates also declined:

Crude steel output dropped to 1.9 Mt (vs 2.1 Mt YoY)

Utilization fell to 79–80% (vs 95–96% in Q1 2024)

Meanwhile, the company is accelerating capital investments, with USD 311 million spent in Q1 2025 (up from USD 167m), focusing on key long-term projects:

New blast furnace commissioned at İsdemir

4th coke oven battery under test at Erdemir

Automation, energy efficiency, and robotic upgrades underway across both plants

The company is prioritizing modernization and efficiency in anticipation of a future market recovery.