Desa (DESA) 4Q25 Financial Results

DESA reported TL907mn in revenue, TL277mn in EBITDA, and TL190mn in net income in 4Q25. Although revenues declined on a yearly basis, the notable improvement in gross margin, resilient operational profitability, and a more balanced financial expense profile supported bottom-line performance. The resilience in profitability and strong cash generation maintained throughout 2025 continue to support our investment thesis, while we also view the easing pressure from financial expenses as a positive development. Although we have updated our model assumptions, we maintain our 12-month target price at TL18.00 and upgrade our recommendation from HOLD to BUY due to the stock’s upside potential of above 40%.