Arçelik (ARCLK) Q2 2026 earnings summary

Executive summary

• Profitability improved sequentially, with significant bottom-line gains from one-off items related to the Whirlpool transaction and a turnaround in net income attributable to equity holders, reaching TRY 1.49 billion from a net loss of TRY 5.38 billion in the prior year period.

• Strategic actions included exiting the Hitachi JV, acquiring the remaining 25% stake in Beko B.V. from Whirlpool, and the classification of major assets and liabilities as held for sale, including the planned divestiture of Arçelik Hitachi and Koç Finansman.

• Free cash flow improved both quarter-over-quarter and year-over-year, supported by disciplined capital allocation.

Financial highlights

• Revenue for 2Q26 was TRY 141,324mn, down 12% year-over-year; 1H26 revenue was TRY 280,733mn, down from TRY 313,100mn year-over-year.

• Net income for 2Q26 reached TRY 2,813mn, a turnaround from a net loss of TRY 3,903mn in 2Q25.

• Gross margin increased by 0.9pp year-over-year to 29.3% in 2Q26; gross margin for H1 2026 was 29.6%, up from 28.5% in H1 2025.

• Adjusted EBITDA margin declined by 0.7pp year-over-year to 5.2% in 2Q26.

• Free cash flow improved to TRY -18.1bn in 1H26 from TRY -31.5bn in 1H25.

Outlook and guidance

• 2026 revenue guidance revised: Türkiye expected to be flattish, international sales to see a single-digit decline.

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

• NWC/Sales expected around 22%, with CAPEX guidance at approximately EUR 250mn.

• The company expects the sale of Arçelik Hitachi to close within 12 months, pending regulatory approvals.

• Deferred tax calculations reflect a reduction in the corporate tax rate for manufacturing income effective 2027.