Karsan (KARSN) Q3 2024 earnings summary

Executive summary

• Revenue for the first nine months of 2024 declined to 5.85 billion TL from 6.56 billion TL year-over-year.

• Net loss of 841 million TL in 2024 Q3, compared to a profit of 992 million TL in 2023 Q3; net profit margin turned negative at -0.14%.

• EBITDA fell to 195 million TL from 326 million TL year-over-year.

• Operating profit dropped to 305.1 million TL from 1,495.1 million TL in the same period of 2023.

• Capacity utilization rose to 74.2% from 55.3% year-over-year, with 34,063 vehicles produced.

Financial highlights

• Quarterly revenue dropped to 1.25 billion TL in 2024 Q3 from 1.81 billion TL in 2023 Q3.

• Gross profit turned negative at -47 million TL, down from 210 million TL year-over-year.

• Operating profit was -261 million TL, compared to 71 million TL in 2023 Q3.

• Net loss for the quarter was 541 million TL, versus a profit of 1.25 billion TL in 2023 Q3.

• Total assets increased to 14.49 billion TL from 14.25 billion TL year-over-year.

Outlook and guidance

• 2024 revenue target set at 9-10 billion TL, with an EBITDA target of 1.2 billion TL.

• Sales volume guidance for 2024 is 450-500 units.

• Karsan plans to launch the 12-meter e-ATA HYDROGEN with Toyota fuel cell technology in 2025.

• Focus remains on expanding electric and autonomous vehicle exports, with new projects in Europe, the US, and Japan.

• The company is preparing an integrated sustainability report for 2024 and aims to enhance ESG scores through supplier assessments.