Sabancı Holding
Q2 2025 Financial Results Earnings Release
August 13, 2025
Sabancı Holding has announced its consolidated financial results for the second quarter of 2025, which has been shaped by a macro environment that shifted back to tight monetary conditions in Türkiye. In this quarter, Sabancı Holding delivered solid financial results through firm financial discipline, effective cost management with a strong cash generation through improved working capital.
Non-bank EBITDA margin expansion, particularly driven by financial services and energy segments, passed largely through to the bottom-line with some support from lower monetary losses despite increase in financial expenses amid prevailing high borrowing cost conditions in Türkiye. As a result, the Group posted TL 1.8billion net income in Q2'25, swinging back from TL 2.4billion net loss in Q2'24, through its financial resilience in a challenging macro environment.
Non-bank operational cash flow doubled vs. H1'24, reaching TL 29billion, driven by a notable uplift in EBITDA and improved net working capital. Net debt/EBITDA1stood at 1.7x, well below the 2.0x Group policy as Holding-only net cash remained at TL 13.3billion. Alongside 12.6% of capex to sales ratio 1in Q2, Sabancı Holding's financial strength enables the Group to maintain strategic flexibility in capital allocation while preserving cash flow discipline.
Aligned with Sabancı Holding's capital allocation strategy and sustainability objectives, the
U.S. renewable energy portfolio was expanded with the acquisition of 156 MW Pepper Solar Farm in Texas in July, targeted for commissioning in Q3'27. Together with the operational Cutlass II solar plant and the recently commissioned Oriana solar project, total capacity in the
U.S. will reach approximately 660 MW. In Türkiye, in addition to the 25 MW added in 2023, energy generation business has expanded its capacity by a further 340 MW over the past two years, accelerating its progress toward reaching 1,000 MW capacity under YEKA WPP-2 projects. These developments have already pushed total generation capacity beyond 4 GW and the capacity target is on track to reach at least 6,250 MW by the end of 2028 , that is supported by a secured growth pipeline that includes 750 MW awarded under the YEKA WPP-2024 tender in March.
In view of these financial results and strategic developments, Sabancı Holding continued to weather through global and domestic volatility with resilience, maintaining its strategic focus in these challenging market conditions, supported by prudent financial discipline.
1Non-bank
Financial Highlights
The combined revenue2reached TL 357billion in Q2'25, up by 4% year on year. This growth was driven both by non-bank and banking revenues, with an annual increase of 4% in each segment.
The combined EBITDA was realized at TL 36billion with an EBITDA margin of 10.1% in Q2'25. Non-bank nominal EBITDA increased by 36% year on year, with a robust EBITDA margin level of 13.5%, primarily driven by energy and financial services.
Consolidated net income came in at TL 1.8billion in Q2'25, swinging back from TL
2.4billion net loss in Q2'24 with higher EBITDA and some support from monetary losses despite increase in financial expenses.
The consolidated ROE was at -2.8% in Q2'25 versus -5.1% at the end of 2024. (non-bank ROE was at -0.7% in Q2'25 versus -2.3% at the end of 2024)
Combined non-bank operational cash flow increased to TL 29billion in H1'25, doubling compared to last year's same period, driven by improvement in EBITDA and improved working capital management.
Non-bank Net Debt/EBITDA was 1.7x at Group level, well below the Group's policy of 2.0x for non-bank businesses.
Holding-only net cash was TL 13.3billion at the end of Q2'25.
Non-bank Capex/Sales was at 12.6% in parallel with the midterm target range of 15%-20%.
Strategic Highlights
Mr. Kıvanç Zaimler, who has been leading Sabancı Holding's Energy Group since 2018 and has extensive experience across the Group's energy, climate, and technology businesses, has been appointed as Chief Executive Officer and Member of the Board of Directors, effective 1 June.
To support the growth of core businesses and strengthen new growth platforms, Sabancı Holding discontinued the Mobility Solutions Group. Brisa's operations were realigned under the Materials Technologies Group, while Temsa will continue its operations under Energy & Climate Technologies. Teknosa and Carrefoursa will be under the Strategy and Business Development Group effective 30 April.
As part of its 2029 roadmap, Sabancı Holding restructured its organization to evaluate growth and scaling opportunities in the digital business line. The Digital Group Presidency, along with domestic and international energy operations, operates under CEO Mr. Kıvanç Zaimler to enhance synergies and accelerate strategic initiatives starting 20 June.
2Revenue excludes Holding dividend income
Sabancı Holding's energy generation business, Enerjisa Üretim commissioned the first phase of its 30thpower plant, Uygar WPP, as part of its strategic growth plans in Türkiye, pushing its total generation capacity beyond 4 GW as of early May. Once completed, the plant will reach 250 MW installed capacity and become Türkiye's second-largest wind farm.
To accelerate future technologies, Sabancı Holding increased the share capital of its wholly owned international arm of its energy group subsidiary - Sabancı Climate Technologies, by USD70million, total contribution reached USD311million to finance new investments in renewable energy and climate technologies.
Subsequent Events Highlights After the Balance Sheet Date
Sabancı Renewables Inc., a wholly owned subsidiary of Sabancı Climate Technologies, acquired 100% of Pepper Solar Farm LLC in Texas (156 MW), increasing its U.S. renewable portfolio to 660 MW by 2027, in line with Sabancı Group's strategy focused on new economy-driven growth and sustainability.
Segments Highlights
- Banking: Robust fee income supports core revenue generation
-
Financial Services: Sharp improvement in net income as non-life's contribution gained
momentum post restructuring
- Energy: Major improvement in segment's EBITDA with higher contribution from generation business
- Material Technologies: Domestic market backdrop pressured top-line on cement & tire, higher financing cost further hit bottom-line
- Digital & Other: EBITDA improvement on an annual basis failed to pass through to the bottom-line on higher financial expenses and monetary losses
ENERJİSA ÜRETİM (ENERGY GENERATION AND TRADING) KEY FINANCIALS
in millions TL | Q2'24 | Q2'25 | YoY | H1'24 | H1'25 | YoY |
Combined Revenue | 12,240 | 22,048 | 80% | 26,999 | 39,933 | 48% |
Combined EBITDA | 1,184 | 4,842* | 309% | 3,794 | 7,550* | 99% |
EBITDA Margin | 10% | 22% | 1,238bps | 14% | 19% | 490bps |
Combined Net Income | 406 | 2,885 | 610% | 2,623 | 2,854 | 9% |
*USD equivalent of EBITDA as of Q2: USD122M, H1: USD190M (based on period-end fx rates)
In the generation business, the company achieved an 80% year-on-year revenue growth in Q2'25, driven by higher generation volumes, compared to the previous year's low base, which was impacted by maintenance activities at the CCGT plant.
Company's EBITDA was impacted by weak hydrology due to drought and trading business' lower contribution yet positively affected by higher capacity payment. Furthermore, there were derivative losses incurred in Q2'24 and income recognized in relation to derivative transactions in Q2'25 that have resulted in strong EBITDA performance, which were mostly reflected in the improvement in bottom-line.
SABANCI HOLDING COMBINED SEGMENT RESULTS
SABANCI HOLDING COMBINED RESULTS | H1 | H1 | CHANGE | Q2 | Q2 | CHANGE |
in thousands TL | 2025 | 2024 | % | 2025 | 2024 | % |
REVENUES (1) | 714,121,995 | 688,186,104 | 3.8 | 357,040,598 | 344,449,568 | 3.7 |
Bank | 396,970,128 | 367,593,730 | 8.0 | 198,094,592 | 190,860,219 | 3.8 |
Non-Bank | 317,151,867 | 320,592,374 | -1.1 | 158,946,006 | 153,589,350 | 3.5 |
Material Technologies | 66,668,588 | 71,830,758 | -7.2 | 34,272,814 | 34,824,010 | -1.6 |
Digital | 2,628,339 | 1,571,619 | 67.2 | 988,367 | 663,819 | 48.9 |
Energy | 144,921,361 | 137,806,590 | 5 | 73,292,042 | 67,175,469 | 9 |
Financial Services | 30,530,420 | 33,023,907 | -7.6 | 13,424,538 | 13,614,887 | -1.4 |
Other | 72,403,159 | 76,359,500 | -5.2 | 36,968,245 | 37,311,165 | -0.9 |
EBITDA | 76,489,218 | 83,411,674 | -8.3 | 36,182,589 | 34,649,907 | 4.4 |
Bank | 37,642,163 | 50,254,189 | -25.1 | 14,674,523 | 18,786,138 | -21.9 |
Non-Bank | 38,847,055 | 33,157,485 | 17.2 | 21,508,066 | 15,863,768 | 35.6 |
Material Technologies | 7,089,636 | 9,706,272 | -27.0 | 4,168,311 | 4,873,449 | -14.5 |
Digital | -16,976 | -347,298 | -95.1 | -21,879 | -153,496 | -85.7 |
Energy | 27,135,926 | 21,732,062 | 24.9 | 14,054,873 | 9,173,815 | 53.2 |
Financial Services | 3,999,392 | 1,494,767 | 167.6 | 2,664,149 | 1,514,349 | 75.9 |
Other | 639,076 | 571,682 | 11.8 | 642,613 | 455,652 | 41.0 |
NET INCOME | -1,799,498 | -19,836,993 | 90.9 | 3,687,510 | -3,611,189 | n.m. |
Bank | -1,406,922 | -14,981,406 | 90.6 | 193,365 | -3,100,092 | n.m. |
Non-Bank | -392,576 | -4,855,587 | 91.9 | 3,494,145 | -511,097 | n.m. |
Material Technologies | 185,054 | 3,433,265 | -94.6 | 363,436 | 2,216,922 | -83.6 |
Digital | -343,769 | -454,301 | -24.3 | -262,342 | -157,858 | 66.2 |
Energy | 3,857,175 | -1,640,421 | n.m. | 4,386,505 | -289,247 | n.m. |
Financial Services | 1,519,547 | -649,407 | n.m. | 1,890,489 | 496,438 | 280.8 |
Other | -5,610,583 | -5,544,723 | 1.2 | -2,883,943 | -2,777,351 | 3.8 |
Combined figures do not include Holding dividend income
Inflation accounting is applied to financial statements in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies
SABANCI HOLDING CONSOLIDATED SEGMENT RESULTS
SABANCI HOLDİNG CONSOLIDATED RESULTS | H1 | H1 | CHANGE | Q2 | Q2 | CHANGE |
in thousands TL | 2025 | 2024 | % | 2025 | 2024 | % |
REVENUES | 529,236,133 | 508,562,083 | 4.1 | 263,566,482 | 257,094,801 | 2.5 |
Bank | 396,970,128 | 367,593,730 | 8.0 | 198,094,592 | 190,860,219 | 3.8 |
Non-Bank | 138,256,457 | 146,439,085 | -5.6 | 68,627,531 | 69,267,976 | -0.9 |
Material Technologies | 35,785,230 | 35,459,836 | 0.9 | 18,057,850 | 17,612,699 | 2.5 |
Digital | 2,456,021 | 1,445,873 | 69.9 | 905,301 | 581,739 | 55.6 |
Energy | 251,884 | 154,471 | 63 | 133,592 | 150,441 | -11 |
Financial Services | 27,365,926 | 33,023,907 | -17.1 | 12,564,390 | 13,614,887 | -7.7 |
Other | 72,397,396 | 76,354,996 | -5.2 | 36,966,398 | 37,308,210 | -0.9 |
Intersegment eliminations | -5,990,452 | -5,470,732 | 9.5 | -3,155,641 | -3,033,394 | 4.0 |
EBITDA | 47,560,863 | 56,917,575 | -16.4 | 22,078,097 | 23,512,044 | -6.1 |
Bank | 37,642,163 | 50,254,189 | -25.1 | 14,674,523 | 18,786,139 | -21.9 |
Non-Bank | 9,918,700 | 6,663,386 | 48.9 | 7,403,574 | 4,725,904 | 56.7 |
Material Technologies | 3,840,102 | 5,166,291 | -25.7 | 2,422,028 | 2,833,600 | -14.5 |
Digital | -16,976 | -347,298 | -95.1 | -21,879 | -153,496 | -85.7 |
Energy | 1,457,105 | -222,056 | n.m. | 1,696,662 | 75,802 | 2,138.3 |
Financial Services | 3,999,392 | 1,494,768 | 167.6 | 2,664,149 | 1,514,348 | 75.9 |
Other | 639,077 | 571,680 | 11.8 | 642,613 | 455,650 | 41.0 |
NET INCOME | -1,365,108 | -10,305,947 | 86.8 | 1,751,259 | -2,449,892 | n.m. |
Bank | -570,449 | -6,104,923 | 90.7 | 80,692 | -1,263,286 | n.m. |
Non-Bank | -794,659 | -4,201,024 | 81.1 | 1,670,568 | -1,186,606 | n.m. |
Material Technologies | 198,624 | 1,597,788 | -87.6 | 338,670 | 1,047,829 | -67.7 |
Digital | -321,409 | -387,610 | -17.1 | -260,432 | -129,077 | 101.8 |
Energy | 2,410,827 | -641,151 | n.m. | 2,585,161 | -344,588 | n.m. |
Financial Services | 621,190 | -250,202 | n.m. | 727,366 | 190,314 | 282.2 |
Other | -3,703,891 | -4,519,849 | -18.1 | -1,720,197 | -1,951,084 | -11.8 |
Consolidated figures do not include Holding dividend income
Inflation accounting is applied to financial statements in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies
DISCLAIMER
The information and opinions contained in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. ("Holding") from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document contains forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Holding management's current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Holding's current judgement and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Holding does not undertake any obligation and disclaims any duty to update or revise any forward-looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell Holding and/or Its group companies' shares. Holding cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of Holding and its group companies. The information contained in this document is published for the assistance of recipients but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither Holding, its board of directors, directors, managers, nor any of its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.