DESA (DESA) 2Q25 Financial Results

DESA reported TL 1.03bn revenue, TL 207mn EBITDA (20% margin) and TL 115mn net profit in 2Q25; the gross margin came in at 56%. 1H25 results were TL 1.84bn revenue, TL 568mn EBITDA (31% margin) and TL 242mn net profit. Despite the impact of promotional activity and higher selling & marketing and G&A expenses, operating profitability was preserved in 2Q. In yesterday’s analyst call, management reaffirmed full-year targets of ~25% EBITDA margin and 13–13.5% net margin; based on current trends we view these as attainable. In this context, we raise our TP to TL 18.00 from TL 16.00; however, given the recent share-price performance and an upside below our one-year inflation assumption, we downgrade our rating to HOLD from BUY.