Ford Otomotiv Sanayi (FROTO) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 declined 12% year-over-year to TL 427.1 billion, with domestic sales down 21% and export revenues down 9%.

• Net income fell 40% to TL 10.3 billion, with margins pressured by inflation, FX headwinds, and competitive pricing.

• Maintained leadership in Turkish commercial vehicles with 24.6% market share, though overall domestic market share declined to 6.6%.

• Export volumes comprised 84% of total sales, with 293,431 vehicles exported, though export sales and production declined 4% and 3% year-over-year.

• Acquisition of Koç Finansman A.Ş. completed for USD 130.6 million to enhance integrated automotive financing and customer experience.

Financial highlights

• Gross profit declined 28% to TL 29.3 billion; operating profit dropped 56% to TL 11.6 billion; adjusted EBITDA fell 37% to TL 25.6 billion with a 6.0% margin.

• Net financial debt at TL 112.0 billion, with net debt/adjusted EBITDA at 1.76x.

• Free cash flow positive at TL 10.9 billion, but down 83% year-over-year; CapEx for H1 2026 at TL 8.3 billion, down 35% year-over-year.

• Dividends paid totaled TL 13.7 billion in H1 2026.

• Cash and cash equivalents at period end were TL 56.0 billion, down from TL 75.3 billion at 2025 year-end.

Outlook and guidance

• 2026 Turkish automotive market volume guidance revised down to 1.2–1.3 million units; domestic retail volume guidance reduced to 75,000–85,000 units.

• Revenue growth outlook changed to a mid-to-high single-digit decline; adjusted EBITDA margin guidance at 6–7% for 2026.

• CapEx guidance maintained at €300–400 million.

• Focus on export-driven growth and integration of Koç Finansman to support sales and financing.

• Net financial debt/EBITDA ratio target not to exceed 3.5.