Kardemir Announced Financial Results for the Third Quarter of 2025

Karabük Iron and Steel Industry Inc. (Kardemir) reported a net loss of 682 million TL in the third quarter of 2025. The company had announced a net profit of 1.4 billion TL in the previous quarter. Thus, the net profit decreased by 149 percent on a quarterly basis.

Significant Improvement in Net Loss

The company announced a net loss of 955 million TL in the first nine months of 2025. This amount showed a 76 percent improvement compared to the loss of 3.95 billion TL in the same period last year.

Positive Operating Profitability, Pressuring Financial Expenses

Kardemir demonstrated positive performance in operating profitability, achieving an operating profit of 119.6 million TL in the same period. However, due to the impact of financial expenses and monetary items, a net loss was recorded at the end of the period. Third-quarter financial expenses amounted to 1.4 billion TL, showing a 39 percent decrease compared to the same period last year.

Quarterly Increase in Revenue, Annual Decline

In terms of sales revenue, the company achieved a turnover of 16 billion TL in the third quarter. This figure increased by 2.5 percent compared to the previous quarter, while it decreased by 17 percent on an annual basis. In the first nine months, total sales revenue amounted to 48.2 billion TL, experiencing a 12 percent annual decline.

Global Demand Weakness Affected Sales

While production balance was maintained with an increase in production volume, a real decrease in sales revenue was observed due to the decline in prices. This development was due to weak global steel prices and demand contraction in the European and Middle Eastern markets. While domestic sales remained relatively stable, there was a decline in export volume. The company's balanced pricing strategy and improvements in the product mix contributed to limiting the decrease in revenue.

Increase in Gross Profitability and Expense Optimization

Gross profit increased by 11 percent to 3.1 billion TL in the first nine months. The improvement in profitability was achieved through optimizations in coke, energy, and labor expenses.

Uneven Capacity Utilization

The capacity utilization rate was recorded at 74 percent. Capacity utilization in rolling mill lines ranged between 83-86 percent, while it was 54 percent in the bar and coil line, and 11.5 percent in the railway wheel facility.

Source: SteelRadar