Koç Holding (KCHOL) Q1 2026 earnings summary

Executive summary

• First quarter 2026 saw strong performance and disciplined execution amid macroeconomic volatility and inflationary pressures, with a diversified portfolio supporting resilience and growth.

• Combined revenue exceeded TL 1.2 trillion, up 7% year-on-year, and consolidated net income reached TL 522 million, reversing last year's net loss.

• Finance, Automotive, and Energy segments were key profit contributors, while Consumer Durables and Other segments had a dilutive impact.

• Maintained robust financial flexibility with net cash position of $969 million and low leverage (Net Financial Debt/EBITDA at 1.5x).

• The group applied inflation accounting due to hyperinflationary conditions in Türkiye, restating prior periods for comparability.

Financial highlights

• Combined profit before tax rose 66% to TL 29.9 billion; consolidated net income improved to TL 522 million from a loss of TL 1.9 billion in Q1 2025.

• Gross profit increased 8% year-over-year to TL 130.5 billion; operating profit up 33% to TL 30.4 billion.

• Net cash at holding level exceeded $1.0 billion after advance dividend from EYAŞ in April 2026.

• Dividend income of TL 18.8 billion received and TL 17.3 billion distributed in March 2026.

• Net cash position at holding level was $969 million (TL 46 billion), with 84% in hard currency.

Outlook and guidance

• Ongoing global uncertainties and inflationary pressures expected to persist, with disciplined execution and prudent risk management prioritized.

• Tüpraş expects net refining margin of $6.0–7.0/bbl and capacity utilization of 95–100% for 2026.

• Automotive sector guidance: Tofaş retail sales 350–370k units, TürkTraktör production 140–150k units, Ford Otosan retail domestic volume 390–420k units.

• Arçelik targets high single-digit international revenue growth and 7–8% adjusted EBITDA margin.

• Yapı Kredi expects >100bps NIM improvement, TL loan growth of 30%, and ROTE in high-mid twenties.