Karsan (KARSN) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached 4.22 billion TL, a 3% decrease year-over-year; EBITDA rose 6% to 427 million TL.

• Net loss for H1 2024 was 276 million TL, widening 16% compared to the same period last year.

• Q2 2024 revenue increased 7% year-over-year to 2.32 billion TL; EBITDA up 41% to 375 million TL.

• Operating profit declined sharply, down 60% for H1 and 82% for Q2 year-over-year.

• The company advanced its European market share, ranking 6th in electric public transportation and leading in e-JEST and e-ATAK segments for four consecutive years.

Financial highlights

• Gross profit for H1 2024 rose 2% year-over-year to 811 million TL; Q2 gross profit up 21% to 577 million TL.

• Investment income turned negative in H1 2024 at -203 million TL, a 438% decline year-over-year.

• Financial expenses improved by 48% in H1 and 72% in Q2 year-over-year.

• Free cash flow turned negative at -707 million TL in H1 2024, compared to 124 million TL in H1 2023.

• Total assets decreased to TL 12.3 billion as of June 2024, down from TL 15.0 billion a year earlier.

Outlook and guidance

• 2024 revenue guidance set at 9-10 billion TL, with EBITDA expected between 1.3-1.4 billion TL.

• Net profit margin targeted at 2-3% for 2024.

• Sales volume guidance for 2024 is 500-600 units.

• Plans to release an integrated sustainability report in 2024 and target carbon neutrality by 2030, now using 100% renewable energy.

• Expanding autonomous vehicle projects, including a world-first airport transfer in Rotterdam scheduled for late 2024.