Arçelik (ARCLK) investor relations material

Executive summary

• Profitability improved year-over-year and quarter-over-quarter, driven by disciplined execution and protected input costs despite softer demand.

• Revenue for Q1 2026 was TRY 130.3 billion, down 8.8% year-over-year, with a net loss of TRY 2.2 billion, reflecting margin pressure and restructuring costs.

• Post-merger integration and ongoing restructuring supported operational performance, with synergy delivery and cost optimization partially offsetting weaker demand.

• Seasonal working capital investments and restructuring outflows temporarily weighed on cash flow and leverage.

• Significant restructuring activities and asset sales, including the planned divestment of Arçelik Hitachi, impacted results.

Financial highlights

• Revenue declined 9% year-over-year to TRY 130,272mn; gross profit fell 5% to TRY 38,822mn.

• Operating profit rose 62% year-over-year to TRY 2,121mn; net income was negative at TRY -2,214mn, a 13% improvement.

• Adjusted EBITDA margin increased by 1.1 percentage points year-over-year to 6.4%.

• Cash and cash equivalents decreased to TRY 79.5 billion from TRY 107.7 billion at year-end 2025.

• Free cash flow was negative at TRY -19.2bn, impacted by seasonal working capital needs.

Outlook and guidance

• 2026 revenue guidance revised: Türkiye expected to be flattish in TRY, international sales now guided to low single-digit growth in FX.

• Adjusted EBITDA margin guidance maintained at 6.25% to 6.50%.

• The company is undergoing major restructuring, including the sale of its 60% stake in Arçelik Hitachi, expected to close within 12 months and bring in USD 205 million plus additional payments.

• Ongoing optimization initiatives and asset sales are expected to impact future results and cash flows.