Turkish Tractors' Profit Remained Below Expectations.

Türk Traktör's Q3 2025 Report

SEVCAN ERSÖZLÜ/BLOOMBERG HT RESEARCH

Türk Traktör announced its nine-month financial results for 2025. The company's net profit declined by 77.04% year-on-year to 917 million TL, and decreased by 16.23% compared to the previous quarter. The net profit margin fell by 7.2 points year-on-year to 2.51%. The main reasons for this decline include 2.6 billion TL in net finance expenses, which increased by 59% quarter-on-quarter and by 444% year-on-year.

Decrease in Sales Revenues

In Q3, Türk Traktör's sales revenues declined by 34.32% year-on-year and by 9.57% quarter-on-quarter, reaching 11.2 billion TL. The decline was significantly impacted by a decrease in tractor sales volume. The gross profit figure fell by 42.37% year-on-year and by 6.02% quarter-on-quarter to 1.8 billion TL, with the gross profit margin decreasing to 16.24%.

EBITDA Performance

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) reached 1.6 billion TL in Q3, marking a 33% year-on-year decline. EBITDA exceeded the market expectation of 1.2 billion TL by approximately 33%. The EBITDA margin remained at 14.8%, with a 4.6-point increase quarter-on-quarter.

Financial Outlook for the First Nine Months of 2025

In the first nine months of 2025, Türk Traktör's total sales revenues decreased by 40.64%, falling to 39.2 billion TL. During this period, the gross profit margin declined to 14.69%, while the EBITDA margin decreased to 10.29%. A significant contraction was observed in domestic sales; Türk Traktör sold only 12,315 domestic and 253 imported tractors within the country.

Situation in the Turkish Tractor Market

In the first nine months of 2025, Türk Traktör led the Turkish tractor market with a 41.1% market share, while the total sales volume of the market contracted by 36%. New Holland maintained its leading position in the Turkish market, while CASE IH experienced a decline.

Increased Debt and Cash Position

The company's net debt position rose by 181%, reaching 10.7 billion TL. Cash resources declined by 1 billion TL compared to the end of 2024, standing at 5.6 billion TL. Expectations for domestic tractor sales in 2025 have been revised downward to 15,000 - 17,000 units.