ASELSAN Financial Performance: Q1 2025 Review and Insights
**ASELSAN has reported impressive financial results for the first quarter of 2025, achieving a revenue of 22.8 billion TL, representing a real growth of 9% compared to the previous year.** Contributing significantly to this revenue boost were deliveries in various sectors including Air Defense Systems, Weapon Systems, Radar technologies, Electronic Warfare, and Military Communication Systems. The company’s focus on operational efficiency has led to an EBITDA margin of 23%, marking a 10% increase from the prior period and amounting to 5.1 billion TL.
The company has demonstrated strong performance in managing its Order-to-Sales ratio, which has remained above 2 for two consecutive years, outpacing industry averages. In addition, ASELSAN has solidified its leadership in research and development, with R&D expenditures climbing 33% year-on-year to $250 million. The increase in investment expenditures by 70% compared to the same period last year underscores ASELSAN’s commitment to growth and innovation.
During the first three months of 2025, ASELSAN successfully reduced its financial debts by 8%, alongside a significant drop in trade debts by 37%. This resulted in a notable improvement in the Net Debt to EBITDA ratio, which fell to 0.60 from 1.07 at the end of the previous quarter, demonstrating the company’s robust financial health relative to industry benchmarks.
Reflecting on ASELSAN’s successful trajectory, CEO Ahmet Akyol noted, “We have continued to benefit from the strong momentum initiated in 2024, a record year for ASELSAN. Our impressive figures across various metrics indicate that we are on the right path, particularly with a 10% real increase in revenue compared to last year. The remarkable 46% rise in orders further highlights our clients’ confidence in us, amplified by a staggering 220% increase in export orders.”
Investments and Innovations
In the first quarter of 2025, ASELSAN has prioritized future growth through substantial investments, increasing R&D spending by 33% and investment expenditures by 70%. Despite these escalations in expenditure, ASELSAN successfully managed to enhance its cash flow, indicating operational effectiveness and productivity gains. Akyol emphasized that these outcomes reflect sound management practices and investor trust.
Highlighting achievements in product development, ASELSAN has successfully delivered key systems such as the HİSAR O Air and Missile Defense System, and has also launched advanced electronic support systems for the Turkish military. New technologies, including the GÖZDE Guidance Kit, which successfully targets high-speed moving objects, display ASELSAN’s commitment to innovation and responsiveness to defense needs.
Furthermore, ASELSAN’s capabilities have grown through strategic investments in photon detectors, radars, and air defense systems, with a total of $616 million allocated to these initiatives under the Project-Based Investment Incentive scheme. This investment is crucial for enhancing ASELSAN’s production of high value-added products.
New Contracts and Future Outlook
ASELSAN’s robust order intake underscores its market strength, with new contracts totaling $1.5 billion—up 46% year-on-year. Notably, $372 million of this comes from export contracts, marking a significant 220% increase in international sales. The company’s total remaining orders have surged to $15 billion, illustrating a solid backlog and growth trajectory.
Key contracts secured in the first quarter include agreements for military communication systems, radar and weapon systems for naval platforms, and various next-generation technologies in defense. ASELSAN will also proudly showcase its achievements at the 50th anniversary of TEKNOFEST KKTC, further solidifying its presence in the sector.
