Koç Holding (KCHOL) 2Q26 Financial Results

Koç Holding posted a net profit of TL 19.7bn in 2Q26. The result came in roughly 46% above the TL 13.6bn market consensus and rose 93% year-on-year. Tüpraş was the main driver of the beat. Strong product margins lifted the energy segment's first-half contribution to more than four times last year's level. The non-energy side of the results, however, looks more cautious. Demand and profitability pressure persisted in automotive, while the recovery in consumer durables was largely driven by one-off gains. Downward revisions across the group — Ford Otosan and Arçelik cutting revenue guidance, Tofaş and TürkTraktör lowering market forecasts — reinforce this view. We view the quarter positively given the significant beat at the bottom line. We continue to like the company on the back of its strong holding-only balance sheet and net cash position, along with a NAV discount running above historical levels, and we maintain our 12-month target price of TL 337.00 and our BUY rating. Our target price implies roughly 64% upside to yesterday's close.