Tofaş announced a net profit of 1.2 billion TL for the third quarter of 2025.

Tofaş's Third Quarter Performance

Tofaş reported a net profit of 1.2 billion TL for the third quarter of 2025. The net profit for the nine-month period of the previous year was revised backward from 5 billion TL to 6.7 billion TL. While the net profit decreased by 31% on a quarterly basis, it saw a remarkable annual increase of 183%. The decline in profitability was influenced by a reduction in production volume, rising operating expenses, and temporary margin pressures.

Sales Revenues and Profitability

Tofaş's sales revenues for the third quarter of 2025 reached 87.3 billion TL, marking a 205% annual increase, but fell 2% short of the market expectation of 89.1 billion TL. The primary reason for the revenue increase was the Stellantis Turkey consolidation. However, the gross profit margin was %4.86, which was below both the previous quarter and last year. A 22% decrease in production volume was observed, and rising costs also pressured profitability.

Operating Expenses and EBITDA Analysis

In the third quarter of 2025, Tofaş's EBITDA value was 2 billion TL, falling 29% below market expectations. The EBITDA margin decreased to %2.35, highlighting operational challenges. Tofaş's operating expenses rose to 4.4 billion TL, exhibiting a 37.6% annual increase. Despite strong revenue growth, high costs negatively impacted operational profitability.

Market Performance and Future Expectations

The Turkish automotive market grew by 9.2% in the first nine months of 2025, reaching 927,000 units. Thanks to the Stellantis effect, Tofaş increased its retail sales by 71% to 178,625 units. Domestic sales for Tofaş rose by 77%, while export sales decreased by 5%. The company has lowered its export target to below 50-60 thousand vehicles and raised its domestic sales target to 350-370 thousand vehicles.

Financial Position

Tofaş's net debt reached 19.5 billion TL as of 2025. Payments related to the Stellantis acquisition made in April increased the company's leverage. The company plans to distribute 6 billion TL in cash dividends to shareholders from its 2024 profits.