Turkiye Sise ve Cam Fabrikalari AS

First-half 2026 consolidated revenue was TRY 122 billion, down 8% year over year. EBITDA was TRY 3.7 billion, with a 3% margin versus 13% in the prior year. Adjusted EBITDA was TRY 17.1 billion, with a 14% adjusted margin. Parent-only net income was TRY 5.4 billion, flat year over year, with a 4% margin. Management said the EBITDA decline was driven largely by non-recurring and non-cash items: TRY 3.5 billion impairment loss on the sale of Beykoz investment property, TRY 1.2 billion of investment expense tied to the Stockton Port project termination and partnership discontinuation, and TRY 2.8 billion of revaluation loss on remaining investment property and PP&E. Net financing expenses were nearly TRY 12 billion lower year over year, and monetary gains were TRY 17 billion, up 11% year over year. Gross margin was 27%, and OpEx to sales was 29%. Liquidity and leverage remained elevated: cash and cash equivalents were USD 608 million, gross debt was USD 3.7 billion, net debt was USD 3.1 billion, and net leverage was 9.6x; on a monetary gain/loss-adjusted EBITDA basis, leverage was 3.9x. CapEx was TRY 12 billion, or USD 270 million, and full-year CapEx is now expected to be up to USD 500 million, versus the earlier USD 500 million to USD 600 million outlook. Management said investment-related cash outflows should moderate as major expansion projects are completed, while working capital optimization remains a focus.

CEO Can Yucel framed the first half as a difficult period, especially in Q2, due to energy cost pressure, geopolitical volatility and Chinese competition in global glass markets. He said Sisecam should see some second-half improvement from price increases being accepted, new facilities moving through ramp-up, and benefits from regulatory actions on export restrictions. He also emphasized that the company is shifting toward a more selective growth model, saying the focus in coming years will be more on market share gains and new markets rather than building new lines or capacities.

CFO Gökhan Güralp said reported revenue and EBITDA were distorted by IAS 29 inflation accounting and valuation movements, while adjusted EBITDA at TRY 17.1 billion better reflects underlying profitability. He highlighted the cash position of USD 608 million, gross debt of USD 3.7 billion, net debt of USD 3.1 billion, and net leverage of 9.6x, while noting 89% of debt is hard currency and 79% is long term. He also said CapEx was TRY 12 billion in the first half and that the company had previously guided USD 500 million to USD 600 million for the year, but now expects it to be up to USD 500 million as it disciplines cash burn.

Analysts pressed management on what could drive a second-half margin recovery, given the weak first-half profitability, and asked whether Sisecam had a midterm EBIT margin target. Management pointed to easing energy cost pressure, ramp-up contributions from recently commissioned facilities, and better conditions from export restrictions and pricing actions, but did not give a formal EBIT margin target, saying it is too early for precise comments given the unstable global backdrop. Questions also focused on free cash flow, liquidity, and asset sales. Management said 2026 is a heavy investment year, but it is actively evaluating non-core asset disposals, including after the Beykoz sale, and said it is not rushing but is ready to monetize larger assets if needed. On chemicals, management blamed weaker margins mainly on Chinese oversupply hurting the U.S. export market, while saying Turkey, mainland U.S. and South America are holding up better. The Wyoming operating issue was described as a short-term, one-time shortage that happened in Q2 and has been fixed by technical teams.