Arçelik (ARCLK) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenues reached TRY 121.4 billion, down 11.5% year-on-year in real terms, mainly due to weak international demand and unfavorable product mix, especially in Europe.

• Net sales for H1 2025 were TRY 237.0 billion, down from TRY 243.0 billion year-over-year, with a net loss of TRY 5.0 billion compared to a net profit of TRY 22.6 billion in the prior year.

• Gross margin improved to 28.4% in Q2, supported by lower raw material costs, favorable euro/dollar parity, and production footprint optimization.

• Adjusted EBITDA margin rose to 5.9% in Q2, with further improvement to 7% when excluding inflation accounting impacts.

• Net loss before minority was TRY 3 billion in Q2, with a negative net margin of 2.4%.

Financial highlights

• Consolidated revenue was TRY 121.4 billion in Q2, an 11.5% real decline year-on-year but a 5% sequential increase.

• Gross profit for H1 2025 was TRY 67.6 billion, slightly down from TRY 69.4 billion year-over-year.

• Operating profit increased 56% to TRY 1,707mn in Q2, but dropped to TRY 5.3 billion for H1 from TRY 24.1 billion year-over-year.

• Adjusted EBITDA of TRY 7.1 billion in Q2, with one-off transaction expenses of TRY 70 million excluded.

• Free cash flow was negative at -TRY 23.8 billion in H1, mainly due to increased trade receivables and restructuring outflows.

Outlook and guidance

• 2025 guidance maintained: flat domestic sales in real terms, 15% international revenue growth in euro terms, 6.5% EBITDA margin, and net working capital/sales ratio around 20%.

• EUR 300 million CapEx planned for 2025; further improvement in leverage and working capital expected by year-end.

• Positive impacts from new product launches and brand strategy in Europe expected to be visible from Q3, especially in September–November.

• The company expects to recover deferred tax assets related to investment incentives within 10 years, with sensitivity analysis showing no change in projected recovery periods under macroeconomic fluctuations.

• Ongoing sale of assets held for sale in Poland is expected to complete within twelve months as part of production optimization.