Nearly Half of Borsa Istanbul Companies Report Losses Amid Economic Tightening
Second quarter earnings season reveals a tougher year
As Borsa Istanbul’s Q2 earnings season nears its end, a striking trend has emerged—nearly half of the companies applying inflation accounting have posted losses. Out of 282 listed firms that have released their financials so far, 137 reported losses, meaning 48.58% ended up in the red. That’s a significant jump compared to 36% in the same period last year.
Top losers in energy and consumer sectors
Zorlu Enerji topped the loss charts with over 8.35 billion TL in negative earnings, followed by Arçelik with over 4 billion TL, and Petkim with 3.3 billion TL. Energy companies and durable goods manufacturers were particularly hit hard, with names like Ak Enerji, Vestel, and Carefour also reporting significant losses. Export-oriented sectors, cement, and automotive were also among those struggling.
Inflation accounting and tight policy weigh heavily
The broader economic landscape has clearly affected corporate performance. After the political and financial turbulence of March 19—when Istanbul’s mayor Ekrem İmamoğlu was detained—Turkey’s central bank shifted toward a tighter monetary stance. The policy rate was raised from 42.5% to 46% before being trimmed slightly in July. These tighter conditions, combined with softening domestic demand and global trade uncertainties, created a challenging environment for businesses.
Inflation accounting has also continued to impact financials. While it aims to reflect real value under high inflation, it has caused many firms to report weaker earnings on paper.
A few bright spots in a gloomy season
Despite the bleak picture, some companies stood out with solid earnings. Turkish Airlines posted the highest profit at over 25 billion TL, followed by Tera Yatırım with more than 18.5 billion TL. Tera’s continued strong performance—beating many larger corporates and holding companies—remains notable. Other profitable names include Türk Telekom, TÜPRAŞ, Turkcell, Coca Cola İçecek, and Aselsan.
Q2 data shows stress, but not as bad as Q1
Although the second quarter looks weak compared to last year, it’s showing slight improvement from Q1 2025, when over 52% of companies using inflation accounting reported losses. Still, the picture remains far from ideal, with economic tightening, inflation pressures, and global headwinds continuing to weigh on Turkish businesses. As more companies finalize their reports, investors will be watching closely to see whether this downward trend continues—or levels off heading into the second half of the year.
