Koç Holding (KCHOL) Q3 2025 earnings summary

Executive summary

• Consolidated net income for the first nine months rose 54% year-over-year to TL14,352 million, driven by strong energy and finance segment performance, sectoral and geographical diversification, and significant bargain purchase gains from acquisitions.

• Portfolio diversification includes 31% of revenues from international sales, 46% considered high currency-based, and 90% of NAV from listed assets.

• Revenue for the nine months ended 30 September 2025 was TL1,954,626 million, down from TL2,213,367 million year-over-year, reflecting a contraction in top-line growth.

• Segment performance varied, with energy and finance showing strong contributions, while consumer durables and automotive faced headwinds.

• Major business combinations included the acquisition of Whirlpool's European and MENA operations, resulting in significant bargain purchase gains.

Financial highlights

• Gross profit for the period was TL330,543 million, up from TL320,786 million year-over-year, while operating profit reached TL81,111 million, compared to TL110,599 million in the prior year.

• Net cash position as of September 2025 was USD 874 million, with 68% in hard currency.

• Dividend income for the first nine months was TL21.3 billion, expected to reach $805 million for the year.

• Net monetary position loss was TL7,195 million, reflecting the impact of hyperinflationary accounting.

• Cash and cash equivalents stood at TL375,008 million as of 30 September 2025.

Outlook and guidance

• Tüpraş revised its net refining margin guidance upward to $6.5 per barrel for 2025, with high capacity utilization expected.

• Domestic market challenges expected to persist into 2026, with potential improvement in the second half due to possible political changes and economic rejuvenation.

• No major acquisitions planned in the short term; focus remains on financial fundamentals and opportunistic growth.

• Consumer durables: Arçelik projects high single-digit international revenue growth and EBITDA margins of 7–8%.

• Finance: Yapı Kredi targets mid-twenties ROTE and improved NIM, with loan growth below average inflation.