Tekfen Holding Anonim Sirketi (TKFEN) investor relations material

Executive summary

• Revenue for 1Q 2026 was 17,746 million TL, up from 14,743 million TL in 1Q 2025, but gross profit and EBITDA declined year-over-year.

• The report covers the three months ended 31 March 2026, prepared under inflation accounting due to hyperinflation in Turkey.

• The group is under indirect control of the Savings Deposit Insurance Fund (SDIF) as trustee for its majority shareholder, following a 2025 court decision.

• Net cash position improved slightly, with net cash at -6,054 million TL at 1Q 2026 versus -6,420 million TL at year-end 2025.

• Engineering & Contracting and Agri-Industry are the main revenue drivers, contributing 30% and 68% of total revenue, respectively.

Financial highlights

• Gross profit decreased to 1,037 million TL in 1Q 2026 from 1,413 million TL in 1Q 2025.

• EBITDA fell to 350 million TL in 1Q 2026 from 482 million TL in 1Q 2025.

• Net loss attributable to owners was 535,007 thousand TL, compared to 959,814 thousand TL in Q1 2025.

• Gross profit margin dropped to 7.04% in 1Q 2026 from 7.96% in 1Q 2025.

• EBITDA margin declined to 2.37% from 2.72% year-over-year.

Outlook and guidance

• Management expects to maintain operations as a going concern, supported by ongoing negotiations with banks, renewal of credit facilities, and operational cash generation.

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

• Ongoing geopolitical tensions and supply chain disruptions are expected to keep cost pressures high, especially in the fertilizer segment.

• Domestic regulatory actions aim to stabilize fertilizer supply and prices amid global volatility.