Arçelik (ARCLK) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenues were TRY 124.4 billion, down 11.4% year-on-year due to weak international demand, unfavorable product mix, and pricing pressures, especially in Europe and Türkiye.

• 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, with deleveraging beginning as operational cash flow improved.

• Net loss before minorities was TRY 2.3 billion for Q3, narrowing from the prior year, and net margin was -1.9%.

• Major business combinations were finalized, including the acquisition of Whirlpool's European and MENA subsidiaries, resulting in significant one-time gains from bargain purchases.

Financial highlights

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

• Gross profit margin increased by 267 bps year-on-year to 29.1%.

• Adjusted EBITDA grew 39% year-on-year to TRY 8.7 billion, with a margin of 7.0%, excluding TRY 77 million in one-off expenses.

• Net loss narrowed to TRY 2,338 million from TRY 6,400 million in Q3 2024.

• Operating profit margin rose to 2.2% from 0.3% in Q3 2024.

Outlook and guidance

• Revised year-end guidance: 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 in demand and pricing.

• 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.

• Management focuses on growth in Europe and MENA through recent acquisitions and integration of new subsidiaries.