Tofaş Automobile (TOASO) publishes its balance sheet for the second quarter of 2025 July 28, 2025 Preparing to explain it in history. The company announced a net loss of 140 million TL in the first quarter of the year, creating a negative atmosphere in the markets. The second-quarter results are therefore an important test of whether the company can move back to profitability. Although incoming expectations point to record revenue and high EBITDA figures, the pressure of domestic market competition on the net profit side is noticeable.

Revenue Breaks Record: 66.7 Billion TL

According to the expectations of İş İş İzım, in the 2Q25 period of Tofaş 66.738 billion TL net sales He is expected to get it. This figure is based on the same period last year Annual growth of 108% and according to the previous quarter 160% increase means. In this increase, the contribution of the Stellantis merger and the high sales volume of Fiat branded models, especially in the domestic market, were decisive. But this volumetric growth was not reflected in profitability at the same rate.

EBITDA Rises, Margins Narrow

The company's operational profitability is positive according to EBITDA (Interest, Depreciation and Profit Before Tax) data. 2Q25 EBITDA expectation 2.65 billion TL at the level. This represents an increase of 258% over the previous quarter. However EBITDA margin 4.0% Stays at the level. That is, the profitability ratio compared to the size of the turnover is quite low. This rate, which was 11% in the same period last year, marks a contraction of 7 points.

This chart shows that high sales figures are largely driven by low-margin campaigns and price competition. Increased competition and aggressive pricing policies, especially in the domestic market, have depressed the company's margins. In addition, exchange rate volatility and rising raw material costs are also negatively reflected in operational profitability.

Annual decline in net profit: 1,56 billion TL expected

Tofas's net profit outlook 1.562 billion TL at the level. This marks a decline of 10% on an annual basis. Although this figure is a signal of a turnaround for the company that announced losses in the first quarter, it can be argued that a strong enough profitability could not be generated when considered together with the record revenue.

According to analyst comments, the joint production and model diversification strategy with Stellantis can make positive contributions to Tofaş in the long term. But in the short term, increased price competition in the domestic market, pressure on imported vehicles and difficulties in accessing consumer finance limit profitability.

Market Share Strong, Profitability Under Pressure

Tofaş has a significant share in the passenger and light commercial vehicle market in Turkey. Models such as Fiat Egea, Doblo and Fiorino still stand out for their high sales volumes. However, the low price of these vehicles on a segment basis leads to the fact that they are operated with a low margin, despite the high turnover.

In the export wing of the company, on the other hand, the slowdown in the European market is noticeable. Exports to the Stellantis group in particular make a limited contribution to the profit margin, although they account for the bulk of the total revenue. This could also affect the long-term performance of TOASO shares.

Stock Performance and Technical Outlook

Tofaş shares are trading in the range of 92—96 TL before the balance sheet. Technically, closes above $97 can trigger a new wave of upside, while closings below $90 can mean a breach of the medium-term support level. Although the stock has followed a parallel course to the index since the start of the year, volatility may increase after the balance sheet results.

As a result, Tofaş's Q2 financials offer a cautious outlook due to low margin and profitability ratios, despite record levels of sales and operational size. While the company's long-term potential is strong, clear strategic steps are needed to rebuild investor confidence in the short term.