Tofaş 2025 Q2 Financial Results: Sales Hit Record, Profitability Declines Sharply

Tofaş Turkish Automobile Factory A.S. (TOASO)announced its financial results for the second quarter of 2025 on the Public Illumination Platform (KAP). Turkey's leading automotive manufacturer, at this time 1 billion 751 million TL made a net profit. In the same period of the past year 1 billion 738 million TL The company, which announced a profit, largely maintained its second-quarter profit. But in the first half of the year there was a serious setback on the profitability side.

Net Profit Drops 73% Year-on-Year

Tofaş's consolidated net profit for the first six months of 2025 1 billion 602 million TL It happened. This figure is for the same period in 2024 5 billion 846 million TLStaying well below net profit To a dramatic 73% drop points out. Although the company showed strong sales performance in the second quarter, cost increases, the impact of rates and the rise in production expenses continued to depress net profit.

Sales Revenues Increase Strongly

Company's second quarter sales revenues 69 billion 440 million TL explained as. This figure is obtained in the same period last year 32 billion 96 million TL Approximately according to the level 116% increase means. Sales in the first 6 months 95 billion 98 million TL happened. In the same period of 2024, this figure 81 billion 373 million TL was. Thus, Tofaş achieved its sales in the first half of the year Increase by 17% succeeded.

Gross and Operational Profitability Under Pressure

Although sales revenues more than doubled, the picture remained weak on the profitability side. Rising raw material costs, energy expenses and exchange rate differential losses put downward pressure on net profit. The company's operating profit margin declined compared to last year, while global competition in the automotive sector and changes in demand in the domestic market also limited profitability.

Export and New Models Strategy

Tofaş's export revenues increased in the European market, particularly due to demand in the commercial vehicle segment. New models and investments in electric vehicles to be commissioned in the second half of 2025 are expected to support the company's revenues. However, the high cost of credit in the domestic market and the decline in purchasing power stand out as the main factors that limit sales volumes.

Meaning for Investors

• Tofaş's Turnover performance is strong Albeit, sharp decline in net profit indicates the risk of profitability for investors.
• Sales growth is expected to continue in the second half of 2025, with the contribution of new model launches and exports.
• Currency movements, raw material prices and weakening domestic demand may continue to depress profitability.
• In the medium-long term, the electric vehicle strategy and the increase in share in the European market will diversify the company's revenues.

Overall, Tofaş's second quarter 2025 performance Strong growth in sales while presenting, weak due to the impact of cost pressure on the profitability side It makes an appearance.