Tekfen Holding Anonim Sirketi (TKFEN) Q2 2024 earnings summary

Executive summary

• Revenue for 1H 2024 was 28,289 million TL, down from 32,080 million TL in 1H 2023, reflecting a year-over-year decline.

• Gross profit for 1H 2024 was 3,400 million TL, up from 1,710 million TL in 1H 2023.

• Net profit attributable to owners for 1H 2024 was 4.44 million TL, a significant recovery from a net loss of 1,883 million TL in 1H 2023.

• EBITDA for 1H 2024 was 159 million TL, a significant decrease from 1,907 million TL in 1H 2023.

• Major project wins in Saudi Arabia and ongoing claims/discussions in key contracting projects.

Financial highlights

• Gross profit margin for 1H 2024 was 12.0%, up from 5.3% in 1H 2023.

• Operating profit for 1H 2024 was 100 million TL, compared to an operating loss of 2,240 million TL in 1H 2023.

• Net cash position deteriorated to -2,861 million TL as of June 2024, from -1,486 million TL at end-2023.

• Earnings per share for 1H 2024 were 0.012, compared to a loss per share of 4.932 in 1H 2023.

• Cash and cash equivalents at period end were 6,610 million TL, down from 8,220 million TL at the start of the year.

Outlook and guidance

• New project wins in Saudi Arabia expected to support future backlog and revenue.

• Ongoing negotiations and claims for compensation in major construction projects in Qatar, Russia, and Saudi Arabia.

• Ongoing cost-saving and project monitoring measures in delayed projects.

• Export restrictions and regulatory changes in fertilizer exports expected to impact agri-industry segment.