Tekfen Holding Anonim Sirketi (TKFEN) Q1 2025 earnings summary

Executive summary

• Revenue for 1Q 2025 reached 13,561 million TL, down 39% year-over-year from 22,191 million TL in 1Q 2024.

• Net profit for 1Q 2025 was -735 million TL, nearly unchanged from -736 million TL in 1Q 2024.

• EBITDA for 1Q 2025 was 368 million TL, down from 1,007 million TL in 1Q 2024.

• Operating loss reached 317 million TL, reversing from an operating profit of 385 million TL in 1Q 2024.

• The group continued to face challenges in major construction projects, with ongoing legal and contractual negotiations for compensation and claims.

Financial highlights

• Gross profit margin decreased to 2.72% in 1Q 2025 from 4.54% in 1Q 2024; gross profit was 1.08 billion TL, down from 2.68 billion TL.

• EBITDA margin dropped to 2.7% in 1Q 2025 from 4.5% in 1Q 2024.

• Financial income was 388 million TL, while financial expenses surged to 1.32 billion TL.

• Net cash position worsened to -5,870 million TL in 1Q 2025 from -3,832 million TL in 1Q 2024; cash and cash equivalents decreased to 8.29 billion TL.

• Total assets declined to 70.18 billion TL from 72.50 billion TL at year-end 2024.

Outlook and guidance

• Drought and agricultural frost are expected to reduce fertilizer application and sales in the coming quarters.

• Fertilizer application during May–June is projected to be lower due to severe frost events affecting perennial crops.

• Management is actively pursuing claims and compensation for losses in key construction projects, with legal actions ongoing in Russia and negotiations continuing in Saudi Arabia and Qatar.

• New projects in Saudi Arabia (Phosphate 3 Phase 1 and Jeddah Cluster Pipeline) are expected to contribute to future revenue streams.