Turkish steel producer Kocaer Çelik delivered strong second quarter results with its net profit surging by 80 percent year on year to approximately TRY 100 million, despite challenging global steel market conditions. The steelmaker targets 10 percent quarter-on-quarter revenue growth in 2025, demonstrating a resilient operational performance in a contracting global market.
Strong financial performance amid market headwinds
Speaking to Bloomberg HT, general manager Mehmet Çakmur stated that the company achieved significant improvements across key financial metrics. EBITDA increased 22 percent with the company maintaining a robust 14 percent EBITDA margin. Six-month net profit reached TRY 393 million, marking substantial growth compared to the previous year.
"We are working in line with the targets we set at the beginning of the year," said Mr. Çakmur. "Despite the global steel market facing difficulties, our strong operational performance has been noteworthy."
Global market challenges create opportunities
According to Çakmur, global crude steel production contracted in the first seven months of 2025, with world production reaching 1.884 billion mt in 2024. Asia accounts for 72 percent of global production, with China alone producing 51 percent. This concentration means weakness in Asian markets impacts global steel prices, he noted.
As a primarily export-oriented company, Kocaer Çelik exports 75 percent of its production directly, with total export exposure reaching 90 percent including indirect exports. The company is actively pursuing market expansion across multiple regions, particularly focusing on the energy sector for renewable energy and electricity transmission infrastructure projects.
Strategic expansion across emerging markets
Çakmur stated that the company’s key growth initiatives include expanding its presence in North Africa markets including Egypt, Morocco, and Algeria, while positioning for infrastructure reconstruction opportunities in Ukraine. The company is also leveraging Romania as a gateway to central European markets and expects improved conditions in the US market following recent trade policy developments.
Innovation and sustainability investments drive growth
Kocaer Çelik completed major facility upgrades in 2024, enabling the introduction of seven new products to its portfolio this year. The company currently sources 33-34 percent of its energy from solar installations and is advancing a geothermal energy project with five wells drilled and testing underway. The planned 24-megawatt geothermal facility will power steel operations while providing excess capacity for external sales.
Positive outlook for remainder of 2025
Looking ahead, Kocaer Çelik expects the remainder of 2025 to be characterized by difficult financial conditions, while, due to the easing of interest rates, 2026 is expected to record more investments and a better market in general. Kocaer Çelik’s management targets at least 10 percent growth for 2025 compared to the previous year. The company is conducting feasibility studies for a new steel plant and a fourth profile rolling mill as part of its 2030 strategic vision, with environmental impact assessments and special industrial zone applications submitted.
Despite ongoing global steel market challenges and trade tensions, Kocaer Çelik's diversified geographic presence and focus on value-added products position the company for continued growth in the second half of 2025.
