Tekfen Holding Anonim Sirketi (TKFEN) Q3 2024 earnings summary

Executive summary

• Revenue for 9M24 was TL 42.66 billion, down from TL 45.79 billion in 9M23, with 3Q24 revenue at TL 11.85 billion, and net profit for 9M24 at TL 144 million, reversing a prior net loss.

• Major new contracts in Saudi Arabia valued at $235 million and $212 million were secured, boosting backlog.

• Several significant business combinations were completed, including the acquisition of Babadağ Elektrik Üretim Sanayi ve Ticaret A.Ş. and a real estate merger.

Financial highlights

• 9M24 gross profit margin increased to 10.99% from 6.03% in 9M23; gross profit for the period was TL 4.69 billion, up from TL 2.76 billion.

• 9M24 EBITDA was TL 2,279 million, up from TL 2,761 million in 9M23; 3Q24 EBITDA was TL 989 million, up from TL 901 million in 3Q23.

• Net cash position deteriorated to -TL 2,982 million as of September 2024, from -TL 1,619 million at end-2023.

• Cash and cash equivalents at period end were TL 7.62 billion, down from TL 8.96 billion at the start of the year.

• Total assets decreased to TL 60.04 billion from TL 71.66 billion at year-end 2023.

Outlook and guidance

• Backlog as of 30.09.2024 stands at $953 million, with 76% of projects abroad and 62% in the Middle East.

• Fertilizer prices are expected to remain volatile, with export restrictions in place for certain products in Q4.

• The group is pursuing claims and compensation for losses in major construction projects, with ongoing legal actions expected to impact future results.