Arçelik (ARCLK) Q1 2026 earnings summary

Executive summary

• Q1 revenue was TRY 130.3B, down 8.8% YoY in real terms; gross margin rose 1.1 percentage points to 29.8% and adjusted EBITDA margin rose 1.1 points to 6.4%.

• Softer demand, unfavorable pricing and mix, and geopolitical disruption weighed on sales; procurement discipline, cost actions, and integration synergies supported profitability.

• Seasonal working-capital investment drove negative free cash flow and higher leverage.

Financial highlights

• Revenue was TRY 130,272mn; gross profit was TRY 38,822mn, down 5% YoY.

• Adjusted EBITDA was TRY 8.3B with a 6.4% margin, excluding TRY 555M of one-off expenses; the margin was 7.9% including inflation-related adjustments, per Q&A clarification.

• Net loss was TRY 2.2B; profit before tax was TRY 0.3B and net margin was negative 1.7%.

• Net financial expenses were TRY 7.4B, down 12% YoY but higher QoQ.

• TRY 1.9B of TRY 2.6B total tax expense was deferred tax, largely reflecting IFRS and Turkish tax-basis differences rather than current cash tax.

Outlook and guidance

• 2026 Türkiye revenue guidance is flattish in TRY; international sales are guided to low single-digit growth in FX following a revision amid geopolitical risks.

• Adjusted EBITDA margin guidance remains 6.25%–6.50%; NWC/sales and CAPEX guidance are unchanged at ~22% and EUR 250M.

• Management expects leverage to decline through higher EBITDA, seasonal working-capital release, lower restructuring cash costs, and second-half sales and collections.

• Plastics prices are expected to rise ~10% in 2026; early procurement covers most first-half needs, though some Q2 pressure may persist.