Arçelik (ARCLK) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues reached TRY 124.4 billion, down 11.4% year-on-year due to weak international demand, unfavorable product mix, and pricing challenges in Türkiye and abroad.

• Gross margin improved to 29.1%, supported by lower raw material costs and favorable Euro/Dollar parity.

• Adjusted EBITDA margin rose over 2.5 points year-on-year, reaching 7.8% after monetary position adjustments.

• Net loss before minorities was TRY 2.3 billion, with a net margin of -1.9% for the quarter; net loss narrowed from TRY 6.4 billion in 3Q24.

• Major restructuring and cost-saving initiatives, including footprint optimization and headcount reduction, are ongoing.

Financial highlights

• Consolidated revenues declined 11% year-on-year and 5% sequentially in real terms, reaching TRY 124,446 million in Q3 2025.

• Gross profitability improved by 267 bps year-on-year to 29.1%.

• Adjusted EBITDA grew 39% year-on-year to TRY 8,654 million; margin improved to 7.0%.

• Operating margin increased by 190 bps year-on-year and 82 bps sequentially.

• Net financial expenses fell 37% year-on-year and 4% sequentially.

Outlook and guidance

• 2025 guidance revised: domestic sales expected to decline up to 5% in real terms; international sales to grow 5%-10% in Euro terms.

• EBITDA margin guidance updated to 6%-6.5% for the year, reflecting downside risks.

• Net working capital over sales expected between 20%-22% for the full year.

• CapEx guidance lowered to EUR 250 million.

• Positive free cash flow anticipated for the full year, driven by inventory destocking and strong collections.