Türk Traktori ve Ziraat Makinari A.Ş. (TTRAK), one of the leading companies of the agricultural machinery market in Turkey, announces its financial results for the second quarter of 2025 July 28, 2025 Preparing to explain it in history. After the company made a net profit of 236 million TL in the first quarter of the year, eyes are on its second-quarter performance. But the incoming expectations offer both warning and opportunity to the investor.

Business Investment Forecast: Sharp Decline in Turnover, Strain in Profitability

According to Business Investment data, Turkish Tractor's 2Q25 12,36 billion TL net sales is expected to do so. This represents a 42% decrease compared to the same quarter last year. Despite this severe year-on-year decline, a relatively limited performance has been revealed, with a decrease of 8% quarter-on-quarter.

Expectation of the company's EBITDA 1.08 billion TL While at the level, the EBITDA margin 8.7% It is estimated as. This means a margin contraction of about 9 points compared to the same period last year. However, a 0.9 point improvement compared to Q1 2025 is notable — a result of the company's efforts to maintain margins by increasing sales prices.

90 Percent Decline in Net Profit: Is It Surprising?

One of the most remarkable items is the net profit: for the 2nd quarter 275 million TL net profit is predicted. This figure compares to a net profit of TL 2.62 billion in the same quarter last year A drastic drop of 90% means. But analysts note that this pullback is not a surprise and is largely due to the narrowing and base effect in demand.

While the company experienced a significant decline in domestic sales volumes, price increases were able to offset this effect to a limited extent. In particular, investments postponed due to the slowdown in state-supported agricultural purchases, the difficulty of access to credit and the impact of the exchange rate are depressing the sales of tractors and agricultural equipment.

Operational Efficiency and Cash Management Stand Out

One of the main advantages of Türk Traktor is the low debt ratio and the ability to create regular cash. Although both turnover and profitability contracted in Q2, the company's operational efficiency, high export contribution and disciplined management of production costs ensure that it remains strong in the long term.

The company, which needs to have a strong Q3 and 4 to meet its annual targets, is particularly focused on tax cuts, seasonal order flow and a recovery in export markets. A contraction of close to 30% in profitability is expected across 2025, but its net cash position and dividend potential remain an element of confidence for defensive investors.

Technical Outlook and Expectations

Before the balance sheet announcement, TTRAK shares are trading in the range of 840—880 TL. Although the share price has failed to outperform the index in the past month, the company's post-balance sheet dividend or second-half growth signals can restore direction to the stock. Closes above $900 can technically mean a repurchase signal.

As a result, Turk Tractor's 2Q25 balance sheet will show investors how the company is managing the current challenges and how prepared it is for the period ahead. Margin narrowing and demand decline may be temporary, but the market will only confirm this with clear guidance.