ASELSAN Elektronik Sanayi ve Ticaret Anonim (ASELS) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 reached TL 60.7 billion, up from TL 53.1 billion year-over-year, with gross profit rising to TL 18.8 billion from TL 14.8 billion.

• Net profit attributable to equity holders was TL 6.1 billion, compared to TL 4.3 billion in the same period last year.

• Total assets increased to TL 212.3 billion from TL 204.6 billion at year-end 2023.

Financial highlights

• Gross margin improved to 30.9% from 28.0% year-over-year.

• Operating profit for the period was TL 14.4 billion, down from TL 22.8 billion in the prior year due to lower other operating income.

• Effective tax rate for the period was 706%, reflecting significant deferred tax income from R&D incentives.

• Cash and cash equivalents at period end were TL 3.6 billion, down from TL 9.0 billion at year-end 2023.

• Total equity attributable to equity holders rose to TL 124.0 billion from TL 118.6 billion at year-end.

Outlook and guidance

• The company continues to benefit from R&D tax incentives, with earnings from Technology Development Zones and R&D activities exempt from corporate tax until 2028.

• After the reporting period, new contracts totaling USD 28 million were signed.