Arçelik's Q3 2025 Balance Sheet: 2.1 Billion TL Loss

Arçelik's Q3 2025 Results Announced

SEVCAN ERSÖZLÜ - BLOOMBERG HT RESEARCH

Arçelik reported a net loss of 2.1 billion TL in the third quarter of 2025. The market expectation was for the company to report a loss of approximately 1.1 billion TL during this period. The main source of the loss was high financial expenses, which reached 6.6 billion TL during this period.

Improvement in Financial Indicators

The company recorded a total net loss of 6.4 billion TL in the first nine months of 2025. However, the free cash flow for the first nine months of 2024 was -36.1 billion TL, which decreased to -12.3 billion TL by 2025.

Decline in Revenues

In Q3 2025, the company's sales revenue declined by 11.4% year-on-year, reaching 121.3 billion TL. This decline in revenue was influenced by volume contraction in international markets and pricing difficulties. Despite moderate demand in Turkey, the unfavorable pricing and product mix had an impact, while gross profit increased by 5% on a quarterly basis but decreased by 2.5% year-on-year, amounting to 36.2 billion TL. The gross profit margin increased by 2.7 percentage points year-on-year, sustaining at 28.08%.

Increase in EBITDA Figures

In the third quarter, EBITDA reached 9.4 billion TL, surpassing the market expectation of 8.8 billion TL. The year-on-year increase in EBITDA was 37%, and the quarterly increase was 27.2%.

Net Debt and Leverage

The company's net debt increased to 150.2 billion TL compared to the end of the previous year, but the leverage ratio improved from 5.86x to 5.17x. This indicates the effect of improvement in EBITDA and operational cash flow, along with discipline in net debt.

Investment Activities and Cash Flow

Arçelik's cash values increased by 15.5 billion TL compared to the end of 2024, reaching 71.4 billion TL. The company generated 11 billion TL cash outflow from investment activities and 23 billion TL cash inflow from financing activities.

Future Expectations

Arçelik made a limited downward revision of its expectations for 2025. The company updated its domestic sales revenue expectation to a contraction of around 5%, while reducing its growth expectation for international sales revenue from 15% to the range of 5-10%, and revised its EBITDA margin forecast to between 6-6.5%.