Karsan (KARSN) investor relations material

Executive summary

• Revenue for the first half of 2026 reached 10,100,065 TL, up from 6,769,031 TL year-over-year, but the period ended with a net loss of 255,491 TL compared to a net loss of 396,652 TL in the prior year.

• Gross profit increased to 2,477,535 TL from 1,663,091 TL year-over-year, reflecting improved sales performance.

• Operating profit was 712,046 TL, but high finance costs and inflation adjustments led to a pre-tax profit of only 17,905 TL.

• The financial statements were prepared in accordance with TMS 34 and TMS 29, reflecting inflation accounting due to Turkey's high inflation environment.

Financial highlights

• Revenue rose 49% year-over-year for the first half of 2026.

• Gross margin improved to 24.5% from 24.6% year-over-year.

• Net loss for the period was 255,491 TL, a reduction from the previous year's 396,652 TL loss.

• EBITDA and EBIT not explicitly disclosed, but operating profit was 712,046 TL.

• Net cash outflow from operations was 525,390 TL, with cash and equivalents declining to 499,065 TL from 1,797,579 TL at year-end 2025.

Outlook and guidance

• Management expects revenue growth and improved operating profitability for the remainder of 2026, supported by scale effects and cash inflows.

• No significant going concern risk is anticipated due to planned refinancing and operational cash flows.