This article first appeared on GuruFocus .
Release Date: November 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Ford Otomotiv Sanayi AS ( FOVSY ) maintained its leadership in the commercial vehicle market with a 27.5% market share.
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Export volumes increased by 13%, with revenues up by 12%, driven by the ramp-up of commercial vehicle production.
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The company improved its adjusted EBITDA margin to 8.1%, with a per unit EBITDA of 1,832.
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Net cash from operating activities reached 1.5 billion, showing significant improvement in cash management.
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The electrification of the product portfolio progressed, with electric vehicles now comprising 15.8% of production.
Negative Points
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Domestic revenues decreased by 6% despite a 7% increase in domestic volumes.
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The Turkish domestic market faced intense pricing competition, particularly in the passenger vehicle segment.
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Export markets showed signs of demand reduction, impacting sales out of Turkey.
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Profitability in the passenger car and SUV segments diminished due to competitive pricing pressures.
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The company faced increased net exchange losses, impacting pre-tax and post-tax profits.
Q & A Highlights
Q: Could you explain the outflow in working capital during Q3 and your CapEx outlook beyond 2025? Also, are there any plans for bond issuance or addressing liquidity needs next year? A: The working capital outflow in Q3 was due to inventory management and receivables/payables terms. We are focusing on optimizing these areas. Regarding CapEx, we are concluding a heavy investment period, so expect a tapering down in future years. As for bond issuance, we are proactively looking into market opportunities based on our cash flow needs. (Answered by CFO and Corporate Finance Leader)
Q: Are there any new models planned for 2026, and do you expect price competition in the domestic market to continue? A: We are nearing the end of our major electrification and model introductions, with some carryover launches. Price competition, especially in the passenger vehicle segment, is expected to continue due to cost pressures and market dynamics. (Answered by CFO)
Q: What is the EV sales percentage needed to comply with European regulations, and how do you plan to achieve it? A: We are not directly impacted by compliance issues as we sell to Ford Motor Company, which handles distribution. The plant is ready for EV production, but demand-side support is lagging. We are supporting Ford Motor Company in optimizing plans to meet regulatory requirements. (Answered by CFO)
Q: Can you explain the recurring income in the other operating income segment? A: The income is related to investment incentives that offset certain tax payments. It may continue depending on our tax optimization strategy. (Answered by Corporate Finance Leader)
Q: Why did EBITDA per vehicle drop, and do you expect recovery with more Turkish sales? A: The drop in EBITDA per vehicle is due to heavy competition in the domestic market and demand contraction for trucks. We expect pricing and cost pressures to continue, but our cost management strategies should help maintain healthy adjusted EBITDA levels. (Answered by CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
