Karsan (KARSN) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue was TRY 5.124bn, down from TRY 5.705bn YoY; operating profit edged up to TRY 710.2m, while net loss narrowed to TRY 300.2m from TRY 372.1m.

• Q2 revenue rose to TRY 3.507bn from TRY 3.134bn YoY; net income was TRY 4.5m versus a TRY 381.8m loss in Q2 2024.

• Financial statements received an independent auditor review conclusion that nothing came to the auditor’s attention indicating material non-compliance with TAS 34.

Financial highlights

• H1 gross profit increased to TRY 1.259bn from TRY 1.140bn YoY; cost of sales declined to TRY 3.865bn from TRY 4.564bn.

• H1 operating profit was TRY 710.2m versus TRY 701.3m; operating profit before financial expense was TRY 754.6m versus TRY 427.7m.

• H1 financial expenses were TRY 1.674bn; a TRY 582.5m net monetary position gain partly offset financing costs.

• H1 cash flow from operating activities was negative TRY 437.2m, improving from negative TRY 797.6m; period-end cash was TRY 627.4m versus TRY 1.375bn at year-end 2024.

Outlook and guidance

• 2025 budgets forecast higher core operating profitability through revenue growth, with expected operating cash inflows intended to strengthen working capital.

• Management expects to meet short-term liabilities through operating and financing cash flows, refinancing some borrowing maturities and making partial principal payments.

• Seasonal operating patterns mean H1 results may not indicate full-year performance.