Ford Otomotiv Sanayi (FROTO) Q2 2026 earnings summary

Executive summary

• Revenue declined 12% year-over-year to TL427.1 billion, with domestic sales down 21% and exports down 9%.

• Net income fell 40% year-over-year to TL10.3 billion, with margins pressured by competitive pricing, cost inflation, and weak demand.

• Maintained leadership in Turkish commercial vehicles with a 24.6% market share, despite domestic volume and revenue declines.

• Completed acquisition of Koç Finansman and approved EUR 364 million investment in Ford Trucks' new cab project.

• Ongoing profitability headwinds from inflation outpacing currency appreciation and constrained pricing in domestic and truck segments.

Financial highlights

• Gross profit decreased 28% to TL29.3 billion; operating profit dropped 56% to TL11.6 billion.

• Adjusted EBITDA fell 37% to TL25.6 billion, with margin at 6.0%.

• Net income declined 40% to TL10.3 billion; profit before tax margin at 2.4%.

• Free cash flow fell 83% to TL10.9 billion; CapEx down 35% to TL8.3 billion.

• Net debt/Adjusted EBITDA at 1.76x, with liquidity ratios remaining stable.

Outlook and guidance

• Revenue growth outlook revised to mid-to-high single-digit decline for 2026.

• Adjusted EBITDA margin guidance lowered to 6–7% for 2026.

• Domestic retail sales and wholesale volume guidance reduced amid weaker demand.

• CapEx guidance set at €300–400 million for 2026.