ISTANBUL – Turkish electronics manufacturer Vestel Elektronik reported a ₺4.7 billion net loss for the third quarter of 2025, marking yet another weak performance amid operational challenges, losses from subsidiaries such as TOGG, and rising financial expenses.
The company’s Q3 loss widened compared to ₺4 billion in the same period of last year, though it narrowed from the ₺7.8 billion loss recorded in the previous quarter.
Cumulative Nine-Month Loss Reaches ₺18 Billion
Vestel’s total net loss for the first nine months of 2025 rose to ₺18 billion, representing a 218% increase year-on-year. Persistent operational weakness, subsidiary losses, and mounting financing costs continued to weigh heavily on profitability.
The company has been posting losses since the last quarter of 2024, reflecting a sustained downward trend in financial performance.
Weak Demand and Rising Costs Deepen Pressure
Vestel’s challenges stem largely from shrinking European demand that began in 2023, compounded by high inflation and interest rates throughout 2024. This combination led to a sharp decline in white goods and television exports.
At the same time, ongoing investment expenses related to TOGG’s production process have added to consolidated losses.
Rising energy, logistics, and labor costs, together with foreign exchange losses, have further eroded profitability. By 2025, Vestel’s gross margin dropped to its lowest level in five years, while its debt ratio reached an all-time high. Analysts say this situation points to structural challenges beyond short-term market volatility, raising questions about Vestel’s competitiveness and long-term investment strategy.
Revenue Down 23% Year-on-Year
Vestel’s revenues fell 23% year-on-year to ₺35 billion, in line with market expectations. Both domestic and international sales contracted due to weaker white goods exports and declining TV demand.
EBITDA (FAVÖK) plummeted 80% from a year earlier to ₺788 million, as rising logistics and labor costs offset the limited positive impact of exchange rate movements.
Debt Levels at Record High
Vestel’s net debt surged to ₺82 billion, pushing its net debt-to-EBITDA ratio to 451, signaling elevated financial risk.
Market analysts view the results as negative for Vestel, warning that weak operational performance and high financing expenses are likely to continue putting pressure on profitability in the coming quarters.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök