Tekfen Holding Anonim Sirketi (TKFEN) Q2 2025 earnings summary

Executive summary

• Revenue for 1H 2025 was 26,007 million TL, down from 38,204 million TL in 1H 2024, reflecting a significant year-over-year decline.

• Net profit for 1H 2025 was 410 million TL, a substantial increase from 33 million TL in 1H 2024, with net profit margin rising to 1.58% from 0.09%.

• The group reported a net loss attributable to owners of the parent of TRY 2,401.9 million, compared to a profit of TRY 6.0 million in the same period last year.

• Significant changes in capital and management structure occurred, including major share transfers, SDIF-appointed trustees, and board changes.

• Report covers the six-month period ended 30 June 2025, prepared under inflation accounting due to hyperinflation in Turkey.

Financial highlights

• Gross profit for 1H 2025 was 4,585 million TL, up from 2,122 million TL in 1H 2024, with gross margin improving to 12.00%.

• Gross profit was TRY 410.2 million, a sharp decline from TRY 4,585.0 million in the prior year.

• Operating loss reached TRY 2,144.8 million, compared to an operating profit of TRY 1,054.0 million last year.

• Net cash position deteriorated from -4,062 million TL at 2024 year-end to -6,274 million TL at 1H 2025.

• CapEx increased to 1,261 million TL in 1H 2025 from 796 million TL in 1H 2024.

Outlook and guidance

• Management expects to secure additional financing and maintain operations, assuming successful completion of ongoing bank negotiations and no severe market deterioration.

• Contractual claim and compensation processes have been initiated to recover prior project losses, with organizational measures underway to improve efficiency and cost control.

• Action plans include cost discipline, optimization of working capital, and postponement of non-essential expenditures.

• Ongoing projects such as the North Field East Onshore Project and Saudi Arabia's Phosphate 3 Phase 1 are progressing, with cost increases reflected in financials.