Arçelik (ARCLK) Q4 2025 earnings summary

Executive summary

• Achieved steady progress in 2025 despite challenging market conditions, with improved profitability and robust free cash flow generation driven by EBITDA recovery and disciplined capital and working capital management.

• Revenue for 2025 was TRY 523.9 billion, down from TRY 560.9 billion in 2024, reflecting a decline across key markets, especially Turkey and Europe.

• Net loss attributable to equity holders was TRY 8.36 billion, a significant improvement from TRY -21.543 billion in 2024, but down from a net profit of TRY 2.21 billion in 2024.

• The company implemented hyperinflation accounting (IAS 29/TAS 29), restating prior periods and expressing all figures in terms of purchasing power as of December 31, 2025.

• Significant deleveraging achieved through strong free cash flow, and notable progress in post-merger integration and synergies in Europe.

Financial highlights

• Revenue declined 6.6% year-over-year to TRY 523,933mn, with international sales down 13.5% and Türkiye sales up 0.9% in real terms.

• Gross margin increased by 1.2 percentage points year-over-year to 28.8%, and adjusted EBITDA margin rose by 0.6 percentage points to 5.9%.

• Operating profit rose to TRY 10.5 billion from TRY 9.3 billion year-over-year.

• Free cash flow turned positive at TRY 5.7bn, compared to negative TRY 11.4bn in 2024.

• Cash and cash equivalents increased to TRY 97.8 billion from TRY 66.5 billion.

Outlook and guidance

• 2025 revenue and adjusted EBITDA margin came in below initial guidance due to weak demand in the final quarter.

• 2026 guidance targets flattish revenue in Türkiye, low single-digit growth internationally, and an adjusted EBITDA margin of 6.25% to 6.5%.

• Net working capital to sales ratio expected around 22%, with CAPEX guidance at approximately EUR 250mn.

• Ongoing performance obligations to be recognized as revenue in future periods total TRY 7.2 billion.

• The company is assessing the impact of new accounting standards, including TFRS 18, effective from 2027.