Ford Otosan (FROTO) 1Q26 Financial Results

We evaluate Ford Otosan’s 1Q26 financial results as weak overall and broadly in line with our expectations, as the company continued to face significant annual weakness in revenues and operational profitability despite net income coming in slightly above our estimate. The company reported net income of TL 5.5bn in 1Q26, declining by 35% YoY and 53% QoQ. Net sales revenues decreased by 9% YoY to TL 192.4bn, mainly driven by weak domestic demand, pricing dynamics, and changes in product mix. EBITDA came in at TL 9.6bn with a 5.0% margin, in line with our expectations, while the company’s adjusted EBITDA reached TL 11.7bn, slightly above our estimate of TL 11.4bn, with a margin of 6.1%. Following our updated macro assumptions, we revise our 12-month target price to TL 140 from TL 155 while maintaining our Buy recommendation.