Ford Otomotiv Sanayi (FROTO) Q2 2025 earnings summary

Executive summary

• Revenue reached TRY 365.4 billion for 1H'25, up 12% year-over-year, with 82% from exports and 18% from domestic sales; export volumes rose 18% to 306,000 units, driven by new models and electrified vehicles.

• Net income declined 39% year-over-year to TRY 12.99 billion, mainly due to higher financial expenses and tax charges.

• Adjusted EBITDA rose 18% to TRY 30.6 billion, with margin improving to 8.4% from 8.0% year-over-year.

• Maintained third position in the Turkish market with 8% share and led the Commercial Vehicle segment with 27.5% share.

• Capacity utilization improved to 75%, supported by ramp-up of electrified models and new product launches.

Financial highlights

• Export revenues grew 19% to TRY 299.7 billion, while domestic revenues fell 10% to TRY 65.7 billion.

• Operating profit increased 10% to TRY 20.2 billion, but profit before tax fell 23% to TRY 16.2 billion due to higher net financial expenses, mainly FX losses.

• Gross profit decreased 7% to TRY 30.8 billion, with gross margin compressing to 8.4% from 10.2% year-over-year.

• Net financial expense surged 52% to TRY 20.1 billion, mainly due to FX losses related to the Craiova Plant acquisition.

• Free cash flow reached TRY 49.8 billion, reversing a negative outflow in the prior year.

Outlook and guidance

• Full-year Turkish automotive market volume guidance raised to 1,050,000–1,150,000 units, with domestic retail sales guidance unchanged at 90,000–100,000 units.

• Export and production volume guidance maintained at 610,000–660,000 and 700,000–750,000 units, respectively.

• CapEx guidance revised down to TRY 600–700 million or €600–700 million due to project timing and investment calendarization.

• Revenue growth and Adjusted EBITDA margin guidance maintained at 7–8%.

• Net leverage expected to remain below 2.5x by year-end.