Tofas Türk Otomobil Fabrikasi Anonim Sirketi (TOASO) Q1 2025 earnings summary

Executive summary

• Q1 2025 results were negatively impacted by high competition, limited imported LCV availability, production model transitions, and hyperinflation accounting, resulting in a net loss of TL 140.5 million compared to a net profit of TL 3.88 billion last year.

• Operating cash flow remained strong at approximately TRY5.1 billion in Q1.

• Regulatory approval for the Stellantis Türkiye acquisition is expected to transform the business, consolidating Stellantis brands under one entity and strengthening market leadership.

• Announced a €256 million investment for a new light vehicle project, with production starting between Q1 and Q3 2026.

• Total assets increased to TL 104.6 billion from TL 100.9 billion at year-end 2024.

Financial highlights

• Revenue for Q1 2025 was TL 24.2 billion, down 48% year-over-year.

• EBITDA was nearly 700 million TRY, down about 89% year-over-year, with EBITDA margin at 2.9%.

• Net profit turned negative at -TRY140 million, with negative profit before tax of 188 million TRY.

• Cash and cash equivalents increased to TL 26.6 billion as of March 31, 2025.

• Net financial debt/equity ratio improved to 7% from 17% at year-end 2024.

Outlook and guidance

• Expect significant acceleration in export volumes for the remainder of 2025 as K0 ramps up.

• Guidance maintained: light vehicle market output of 0.9–1.1 million units, domestic retail sales of 110,000–130,000 units, export shipments of 70,000–90,000 units, and production volume of 150,000–170,000 units.

• CapEx guidance for 2025 is €115–150 million.

• Capacity utilization rate expected to reach at least 70% with new vehicle, targeting full utilization by 2027.

• PBT margin guidance to be provided after Stellantis Türkiye acquisition closure.