Koç Holding (KCHOL) H1 2025 earnings summary

Executive summary

• The group demonstrated resilience through sectoral and geographical diversification, with 90% of NAV from listed assets and 33% of revenues generated internationally, despite macroeconomic headwinds and a 9% year-over-year revenue decline.

• Combined profit before tax was TRY 39.6 billion and net income attributable to equity holders was TL 6,235 million for H1 2025, reflecting a 51% decrease year-over-year.

• Portfolio companies contributed the majority of dividend income, with a flexible dividend policy based on income, investment opportunities, and net cash position.

• Interim consolidated financial statements for the six months ended 30 June 2025 were reviewed and found compliant with Turkish Accounting Standard 34, with no material misstatements.

Financial highlights

• Consolidated revenue for 1H 2025 was TL 1,177,413 million, down from TL 1,363,623 million in 1H 2024; combined operating profit fell 41% year-over-year to TL 62.1 billion.

• Net cash position at holding level was USD 857 million as of June 2025, with 69% held in hard currency.

• Dividend income for 2025 YTD reached TL 20.1 billion, with a payout ratio of 15% and a dividend yield of 4.5%.

• Earnings per share for the period was TL 0.246, down from TL 0.503 in 1H 2024.

• Total assets as of 30 June 2025 were TL 4,659,703 million, with equity attributable to equity holders at TL 595,180 million.

Outlook and guidance

• Domestic demand is expected to rise and funding costs to ease as interest rates fall, with Tüpraş targeting a 2025 net refining margin of $5.0–6.0/bbl and capacity utilization of 90–95%.

• Automotive sector anticipates flat to high single-digit revenue growth, with margin pressure from EV competition.

• Arçelik projects EBITDA margin of 7–8% and international revenue growth of ~15% in FX terms, aiming to improve leverage by year-end.

• Yapı Kredi targets TL loan growth below inflation, NIM improvement, and ROTE in the mid-twenties.

• The Group continues to assess the impact of new and upcoming financial reporting standards, with no significant changes in accounting policies or estimates in the current period.