Ford Otomotiv Sanayi (FROTO) Q2 2025 earnings summary

Executive summary

• Achieved TL365.4 bn in revenue for 1H'25, up 12% year-over-year, with 82% from exports and 18% from domestic sales; export volumes rose 18% to 306k units, driven by new models and electrified vehicles.

• Maintained 3rd position in the Turkish market with 8% share and led the Commercial Vehicle segment with 27.5% share; domestic volumes up 3%, but domestic revenues down 10%.

• Adjusted EBITDA rose 18% to TL30.6 bn, margin improved to 8.4% from 8.0% year-over-year, exceeding guidance.

• Net income declined 39% to TL13.0 bn, mainly due to higher financial expenses and tax charges.

• Capacity utilization improved to 75%, supported by ramp-up of electrified models and new product launches.

Financial highlights

• Total revenue grew 12% year-over-year to TL365.4 bn; export revenues up 19% to TL299.7 bn, domestic revenues down 10% to TL65.7 bn.

• Adjusted EBITDA increased 18% to TL30.6 bn, with margin at 8.4%; operating profit up 10% to TL20.2 bn.

• Profit before tax fell 23% to TL16.2 bn; net financial expense surged 52% to TL20.1 bn, mainly due to FX losses.

• Net profit reached TL13.0 bn, impacted by deferred tax expenses and higher financial costs.

• Free cash flow reached TL49.8 bn, reversing a negative outflow in the prior year.

Outlook and guidance

• Turkish market guidance raised to 1,050,000–1,150,000 units; domestic retail sales guidance unchanged at 90,000–100,000 units; export and production volume guidance at 610k–660k and 700k–750k units, respectively.

• CapEx guidance lowered to €600–700 mn due to project timing and investment calendarization.

• Revenue growth and Adjusted EBITDA margin guidance maintained at 7–8%.

• Net leverage expected to remain below 2.5x by year-end.