Ford Otomotiv Sanayi (FROTO) Q2 2026 earnings summary

Executive summary

• Revenue declined 12% year-over-year to TL427.1 billion, with domestic sales down 21% and exports down 9%.

• Net income fell 40% year-over-year to TL10.3 billion, with margins pressured by competitive pricing, cost inflation, and weak demand.

• Maintained #1 position in Turkey's commercial vehicle market with 24.6% share, despite domestic volume and revenue declines.

• Export volumes fell 4% year-over-year to 293,431 units; production decreased 3% to 341,000 units; capacity utilization was 73%.

• Completed Koç Finansman acquisition and approved EUR 364 million investment for Ford Trucks New-Cab Program.

Financial highlights

• Total revenues declined 12% year-over-year to TL427.1 billion; export revenues down 9%, domestic revenues down 21%.

• Gross profit decreased 28% to TL29.3 billion; operating profit dropped 56% to TL11.6 billion.

• Adjusted EBITDA fell 37% to TL25.6 billion, with margin at 6.0%; net income was TL10.3 billion, down 40%.

• Net financial expense improved by 38% year-over-year to TL16.4 billion, mainly due to lower FX losses.

• Free cash flow fell 83% to TL10.9 billion; CapEx down 35% to TL8.3 billion.

Outlook and guidance

• Turkish automotive market volume guidance revised down to 1.2–1.3 million units for 2026; domestic retail and wholesale volume guidance reduced.

• Revenue growth outlook changed to mid-to-high single-digit decline for 2026.

• Adjusted EBITDA margin guidance lowered to 6–7% for 2026, with improvements targeted in the second half.

• CapEx guidance set at €300–400 million for 2026.