Koç Holding (KCHOL) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw stable but subdued economic activity in Türkiye and globally, with sectoral and geographical diversification supporting resilience; 34% of revenues were generated internationally and 90% of NAV came from listed assets.

• Dividend income reached TRY 19.7 billion, with TRY 17.4–17.5 billion distributed to shareholders, yielding 4.5%.

• Net cash position at the holding level was nearly $1.1 billion (USD 1.05bn), with 58% held in hard currency.

• ESG initiatives advanced, including a 17% reduction in GHG emissions since 2017 and ongoing commitments to international sustainability standards.

• Total consolidated revenue for Q1 2025 was TL538.3 billion, down from TL622.0 billion in Q1 2024, with a consolidated net loss attributable to equity holders of TL1.4 billion.

Financial highlights

• Combined profit before tax was TRY 13.8 billion, with net income of TRY 946 million; consolidated net loss was TL1.4 billion due to inflation accounting.

• Consolidated revenues declined 13% year-over-year to TL538.3bn; gross profit fell 11% to TL92.1bn; operating profit dropped 52% to TL17.5bn.

• Net financial debt to EBITDA stood at 1.3x; current ratio was 1.2–1.22x.

• Dividend yield increased to 4.5% in 2025 YTD.

• Total borrowings at quarter-end were TL944.4 billion, with cash and cash equivalents at TL325.4 billion.

Outlook and guidance

• Management expects resilience to market volatility due to a diversified portfolio, strong financials, and prudent risk management.

• Tüpraş expects 2025 production of 11–13mn tons and capex of $140–160mn; Tofaş capex guidance at ~€600mn.

• Arçelik anticipates flat domestic revenue and ~15% international growth in FX, with EBITDA margin guidance of 7–8%.

• Yapı Kredi targets TL loan growth below average inflation and mid-twenties ROTE.

• Share buyback is under consideration to address NAV discount, but no decision has been made.