Half of Borsa Istanbul-Listed Companies Reported Losses in Q1 2025

By Sebnem Turhan of Ekonomim.com

The first quarter of 2025 was disappointing for many companies listed on Borsa Istanbul. Out of 521 non-bank companies that disclosed their financials, 265 reported losses, meaning over 50% ended Q1 in the red. Experts point to persistent tight monetary policy and weakening domestic and global demand as major contributors.

Tough Conditions, Declining Demand Weigh on Earnings

According to an analysis by EKONOMİ, inflation accounting and shrinking demand both in Turkey and abroad weighed heavily on company earnings. Among the 265 companies that reported losses, 67% posted significantly worse results than the same quarter last year.

Even though Turkey has initiated some interest rate cuts, the current tight monetary policy continues to suppress domestic consumption, while price competition and weak demand in foreign markets dragged down revenues.

Additionally, the real appreciation of the Turkish lira harmed exporters, further contributing to weak financial performance.

Former Profit-Makers Turn to Loss

Notably, 100 of the 265 companies that reported losses in Q1 2025 had posted profits in Q1 2024. That means 37% of current loss-makers were profitable just a year ago.

Some of the most striking turnarounds include:

• Investco Holding: ₺2.88 billion net profit → ₺3.46 billion net loss

• Zorlu Enerji: ₺3.5 billion profit → ₺3.33 billion loss

• Petkim: ₺870.5 million profit → ₺2.58 billion loss

• Turkish Airlines (THY): ₺6.92 billion profit → ₺1.85 billion loss

• Arçelik: ₺395 million profit → ₺1.64 billion loss

• Koç Holding: ₺1.35 billion profit → ₺1.41 billion loss

Companies That Deepened Their Losses

Among the firms that expanded their losses:

• Vestel Elektronik posted the largest loss of the quarter, jumping from ₺215 million in Q1 2024 to ₺5.1 billion in Q1 2025.

• Alarko: ₺1.27 billion loss → ₺2.32 billion loss

• Mogan Enerji: maintained a heavy ₺2.28 billion loss

• Kardemir: ₺831.9 million loss → ₺1.48 billion loss

Some Loss-Makers Reduced Their Deficit

Others managed to shrink their losses compared to Q1 2024:

• Sabancı Holding: ₺5.4 billion → ₺2.93 billion loss

• Pegasus Airlines: ₺3.5 billion → ₺2.6 billion loss

• Enerjisa: ₺2.75 billion → ₺741 million loss

• İzmir Demir Çelik: ₺1 billion → ₺611 million loss

48 Companies Moved From Loss to Profit

Despite the bleak overview, 48 companies returned to profitability in Q1 2025. Among the top performers:

• Tera Yatırım: ₺8.81 billion net profit

• Reysaş GYO: ₺8.35 billion

• Ford Otosan: ₺6.5 billion (down from ₺8.97 billion last year)

• Türk Telekom: ₺5.13 billion

A standout was 1000 Yatırımlar Holding, which leapt from a ₺599,000 profit to over ₺5 billion this quarter.

Some Profitable Firms Saw Sharp Drops

Several previously profitable firms saw major declines in Q1 2025:

• SASA: ₺10.7 billion → ₺1.42 billion

• Ereğli Demir Çelik: ₺5.6 billion → ₺426 million

• Enka İnşaat: ₺4.7 billion → ₺3.86 billion

• İsdemir: ₺4.3 billion → ₺1 billion

• Rönesans GYO: ₺2.24 billion → ₺459 million

On the upside, Emlak Konut GYO jumped from ₺81.6 million to ₺3.25 billion net profit.

Expert View: Companies Failed to Grow in Real Terms

Capital Markets Consultant Yunus Kaya highlighted that companies failed to grow in real terms in Q1:

• Inflation-adjusted total sales dropped 6% YoY to ₺3.8 trillion.

• Operating profit down 18%, net profit down 47% to ₺97 billion.

• Net profit margin fell from 5.9% to 4.2%.

Key pressures included:

• Shrinking demand

• Rising costs (rent, depreciation, deferred taxes)

• Increased short-term debt burdens

• Inability to raise prices in line with inflation

When banks and finance companies are included, total net profit fell from ₺237 billion to ₺160 billion, a 33% drop. Kaya emphasized that without inflation accounting, finance companies appeared stronger — but in real terms, they too likely experienced a 25% net profit contraction.

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