Turkish defense electronics giant ASELSAN has reported a record-breaking performance for the first half of 2025, underscoring the company’s expanding global footprint and commitment to indigenous innovation. The company’s revenue rose by 11.3% in real terms compared to the same period last year, reaching ₺53.7 billion, while new orders surged to $2.8 billion — marking a 10% year-on-year increase.
In its public disclosure to the Turkish stock exchange (KAP), ASELSAN highlighted that the strong performance was driven by deliveries across critical domains, including air defense, electronic warfare, electro-optics, radar, avionics, weapon systems, and security technologies. These capabilities have positioned ASELSAN as a key player in meeting the growing global demand for high-tech defense solutions.
aselsaneXt Program Powers Growth
ASELSAN attributes much of its success to the “aselsaneXt” transformation program launched in early 2024, which continues to yield results into 2025. CEO Ahmet Akyol emphasized that the program has accelerated innovation, increased operational efficiency, and boosted financial resilience:
“We have solidified our financial footing with a 1.3 billion USD export portfolio, 2.8 billion USD in new contracts, and a 30% increase in backlog orders, now totaling $16 billion. These achievements reflect our consistent, long-term growth trajectory.”
The company’s EBITDA margin rose by 100 basis points year-over-year to reach 25%, with EBITDA itself growing by 15% in real terms to ₺13.5 billion. ASELSAN also succeeded in reducing its net debt by 38%, pushing its Net Debt/EBITDA ratio down to 0.57 — significantly below the industry average.
Despite rising global costs and ongoing investment in R&D and production infrastructure, ASELSAN’s operating cash flow (OCF) reached ₺13.6 billion, while free cash flow (FCF) came in at ₺816 million, signaling robust liquidity and disciplined financial management.
Export-Led Growth Strategy Yields Results
ASELSAN’s export-focused strategy continues to bear fruit. Of the $2.8 billion in new contracts signed during the first half of 2025, $1.3 billion — roughly 45% — came from direct or indirect exports. This marks one of the company’s highest half-year export figures to date.
Akyol noted that ASELSAN is expanding into new markets and deepening its presence in existing ones:
“Geopolitical shifts and rising global security needs are pushing countries to increase their defense budgets. With our engineering capabilities and strategic foresight, ASELSAN is well-positioned to meet these demands and continue expanding on a global scale.”
Investment in Innovation and Domestic Production
R&D expenditure surged 42% year-over-year to $572 million, further solidifying ASELSAN’s position as Turkey’s top investor in defense innovation. Investment in mass production infrastructure more than doubled, surpassing $100 million, as the company ramped up its output in critical domains such as air defense, smart munitions, radar systems, and electro-optics.
The company also introduced eight new products into inventory for the first time, while the integration of artificial intelligence into operational processes saved approximately $25 million annually. ASELSAN also improved revenue per employee by 1.6% despite increasing its workforce.
Akyol emphasized that localization remains a cornerstone of ASELSAN’s strategy. Collaborating closely with domestic suppliers, the company has placed orders for locally produced components, achieving both technological autonomy and cost efficiency.
Strategic Vision for the Future
ASELSAN’s strategic impact is not limited to financial growth. At the IDEF 2025 defense expo, the company unveiled 10 new high-tech systems, including:
- EJDERHA, an airborne electromagnetic shield system designed for Turkey’s future Iron Dome-like architecture.
- GÖKTAN, a cutting-edge ground-to-ground strike system.
- ASELFLIR-600, a next-generation electro-optical reconnaissance system hailed as one of the most advanced in the world.
Thanks to these innovations, ASELSAN’s market capitalization surpassed $21 billion, making it the most valuable company on Borsa Istanbul as of mid-2025.
“Our financial performance is not just about today; it reflects the discipline and strength to finance our future,” Akyol concluded. “We will continue investing in strategic domains and expanding our global reach with unwavering commitment to innovation, efficiency, and national technology development.”
As ASELSAN enters the second half of 2025, the company remains on track to further increase its global influence, strengthen defense cooperation, and lead Turkey’s defense industry into a new era of technological sovereignty and export-driven growth.
