Sisecam's One-Offs and Oversupply: A Pivot Toward Cash Discipline

A Half Defined by Non-Operating Noise

Sisecam's first-half 2026 results were overshadowed by a cascade of one-off items that buried the underlying operational story. Revenue fell 8% year-on-year to TRY 122 billion, and reported EBITDA collapsed to a 3% margin from 13% a year earlier. The CFO, Gökhan Güralp, was explicit about the cause: “We primarily view the EBITDA decline as the result of non-operational and non-cash investment property valuation movements rather than a deterioration in the underlying profitability of our core operations.” — Gökhan Güralp, Chief Financial Officer (CFO) · 2026-08-17 Indeed, TRY 7.4 billion of non-recurring items—including a TRY 3.5 billion impairment on the Beykoz investment property and TRY 2.8 billion in revaluation losses—dragged the headline margin down by more than 600 basis points. Strip those out, and the Inflation accounting-adjusted EBITDA margin lands at 14%, a healthier picture that management insists reflects the true earnings power of the diversified portfolio.

Chemicals Oversupply and the China Factor

The oversupply in soda ash—driven by new Chinese capacity—remains the most structural headwind. The Chemicals segment's EBITDA margin fell from 14% to 3% as global pricing weakened. CEO Can Yucel noted that the problem is concentrated in the U.S. export market toward Asia Pacific, while operations in Turkey, mainland U.S., and South America continue to perform well. He framed it as a temporary overcapacity: “the overcapacity or oversupply originating from China is not sustainable in many ways, and it has to be rationalized in the future.” — Can Yucel, Chief Executive Officer (CEO) · 2026-08-17 The company is also navigating a one-time transmission-line outage in Wyoming, which it downplayed as 'a very short-term shortage' that has been resolved.

New Capacity and the Ramp-Up Narrative

Offsetting the gloom, Sisecam's Architectural Glass business continues to shine, contributing 55% of EBITDA thanks to strong pricing and the ramp-up of new coated-glass lines in Italy, Bulgaria, and Turkey. The company commissioned its Hungary glass packaging facility at the start of 2026, and management expects these investments to drip into results over the coming quarters. Yucel emphasized that the investment cycle is now essentially complete: “we will not have any new CapEx, new facilities, new lines in the following years with the existing business plan.” — Gökhan Güralp, Chief Financial Officer (CFO) · 2026-08-17 Instead, the focus shifts to working capital optimization, deleveraging, and selective divestments of non-core assets—starting with the Beykoz land sale.

adjusted EBITDA calculation indicated a consolidated profitability figure amounted to TRY 17.1 billion and translated into a 14% adjusted EBITDA margin.

Capital Allocation and the Path Forward

Cash flow remains the binding constraint. Operating cash flow turned negative TRY 2.2 billion, pressured by working capital tied to new facility ramp-ups, and free cash flow was negative TRY 28 billion (TRY 20 billion including land-sale proceeds). Net leverage stood at 9.6x on a reported basis, or 3.9x on adjusted EBITDA. Management is resolute about strengthening the balance sheet, with CapEx guidance trimmed to up to USD 500 million and a clear preference for asset sales over new builds. The CEO reiterated that the company is 'not in a rush' to dispose of larger non-core assets, but the intent is clear.

The second half should see a partial recovery: energy costs are normalizing, pricing actions are being accepted, and the ramp-up of recently commissioned lines should start contributing. As Yucel put it, “we will see more improvements on the EBITDA side in line with the ramp-up period of our new investments.” — Can Yucel, Chief Executive Officer (CEO) · 2026-08-17 Yet the demand environment across glass and chemicals remains fragile, and the global economic backdrop provides little visibility.

The market is also watching the Turkish corporate tax cut, set to drop from 25% to 12.5% for production operations in 2027. Gökhan Güralp explained that the deferred tax benefit has already been booked, and the change will support future earnings. This, combined with the completion of the investment cycle, positions Sisecam for a cleaner 2027—if global headwinds ease.