Tofas Türk Otomobil Fabrikasi Anonim Sirketi (TOASO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered a PBT margin of 3.5%, up 3.6pp year-over-year, with revenue reaching TL 95.1 billion, driven by higher production, consolidated sales in Türkiye, and the K0 model ramp-up.

• Net profit reached TL 2.99 billion, reversing a net loss in Q1 2025, and the Group completed the merger with Stellantis Otomotiv Pazarlama A.Ş., consolidating Stellantis brand distribution in Turkey.

• Local light vehicle market share increased by 1.3pp to 27.1%, LCV market share rose to 48.7% (+5pp y/y), and export volumes surged 155% year-over-year to 16.5K units.

• Production increased 38% year-over-year to 37K units, representing 11.4% of Turkish industry output.

• Investments in new models are progressing, with K9 production set for September 2026 and K0 exports to North America expected to start late 2026.

Financial highlights

• Revenue grew 200% year-over-year to TL 95.1 billion, driven by a 183% increase in shipments.

• EBITDA reached TL 2.6 billion in Q1, and net profit was TL 2.99 billion, compared to a net loss in Q1 2025.

• Gross profit rose to TL 7.13 billion, with gross margin improving to 7.5% from 6.2% year-over-year.

• Operating profit reached TL 1.68 billion, compared to an operating loss in Q1 2025.

• Net industrial debt stood at TL 5 billion after a TL 10 billion dividend distribution and ongoing CapEx.

Outlook and guidance

• 2026 production outlook revised up to 145,000–155,000 units, and export guidance increased to 70,000–80,000 units.

• Domestic market assumption revised to 1.2–1.4 million units due to geopolitical risks.

• CapEx guidance maintained at EUR 250 million for 2026; profitability target remains 3–4% PBT margin for 2026 and 5–7% for 2028.

• The Group expects to recover deferred tax assets within five years, based on long-term profit projections.

• Management continues to monitor macroeconomic and sectoral assumptions for future profitability and tax asset recoverability.