KARDEMIR Posts Record 5.98 Billion TL Net Profit in H1 2026

KARDEMIR posted a 5.98 billion TL net profit for the first half of 2026, signaling a new turning point for Turkey's steel sector.

Karabük Plant as the Performance Engine

A substantial portion of the profit stems from the Karabük Iron and Steel Works (KARDEMIR), where production expansion and lower raw‑material costs drove results. Investors highlight that the completion of capacity‑boosting and automation projects delivered a 12% efficiency gain.

■Production volume: +9%, an extra 1.2 million tonnes versus 2025.

■Raw‑material cost: –7%, reflecting a global dip in iron‑ore prices.

■Energy consumption: –5%, thanks to newly implemented efficiency measures.

Ripple Effects on Turkey’s Steel Index

KARDEMIR’s strong earnings lifted the BIST Steel Index by 3.4%. Analysts expect this performance to send a positive signal across the sector.

■BIST Steel Index: Reached 1,845 points in H1 2026.

■Sector average profit margin: 8.2% versus KARDEMIR’s 11.6%.

■Foreign capital inflow: New investment of $1.2 billion into the steel sector.

Financial Resilience and Debt Profile

While boosting net profit, the company trimmed its debt‑to‑equity ratio by 0.3 percentage points, enhancing its risk profile. This improvement paves the way for rating agencies to view KARDEMIR more favorably.

■Debt/Equity: 45.2% → 44.9%.

■Liquidity ratio: Stable at 1.8×.

■Dividend payout: 30% yield, translating to TL 1.85 per share.

Markets interpret KARDEMIR’s profit jump as a reflection of both domestic demand recovery and a rebound in export markets. Nevertheless, raw‑material price volatility and global steel price uncertainty will continue to test the firm’s long‑term sustainability. Maintaining strategic investments and disciplined cost management remains crucial for preserving its competitive edge.