ASELSAN continued to reap the positive results of the aselsanXt Program, which it launched at the beginning of 2024 to achieve its long-term goals, in the second quarter. Revenue for the first six months of 2025 grew by 11.3% in real terms compared to the same period last year, reaching 53.7 billion TL. Deliveries for Air Defense, Electronic Warfare, Electro-Optics, Radar, Avionics, Security, and Weapon Systems accounted for a significant portion of this revenue.

ASELSAN, which prioritizes operational efficiency, saw its EBITDA margin increase by 100 basis points year-over-year to 25%. ASELSAN’s EBITDA generated from its operations reached 13.5 billion TL, a 15% increase in real terms compared to the previous period. ASELSAN, which has maintained its Business/Sales ratio at 2% for two consecutive years, carried this momentum into the first half of 2025, maintaining its performance above the sector average.

Investment and R&D Expenditures Continue to Increase

ASELSAN, Turkey’s leader in the number of R&D projects, saw its R&D expenditures increase by 42% compared to the previous year, reaching US$572 million. Additionally, ASELSAN’s investment expenditures to strengthen its mass production infrastructure doubled compared to the same period of the previous year, reaching over US$100 million.

The share of financial debt in assets, which was 14.5% in the first six months of 2024, decreased to 12.7% during this period. Trade payables decreased by 21% compared to the end of 2024. Net debt decreased by 38% compared to the same period of the previous year. Thus, ASELSAN’s Net Debt/EBITDA ratio, which was 1.21 in the first half of 2024, stood at 0.57 during this period. The company thus maintained its position below the sector average.

Strong Cash Flow
The improvement in cash flow accelerated in the first six months of the year, as investment expenditures for R&D and mass production continued uninterrupted, and commercial debt decreased.

ASELSAN’s operating cash flows (OCF) were positive in the first half of 2025, reaching 13,635 million TL, and free cash flows (FCF) were positive at 816 million TL.

ASELSAN, having improved its turnover, backlog, signed export contracts, profitability, and many other financial indicators, completed the first half of 2025 with strong results.

ASELSAN General Manager Ahmet Akyol evaluated the six-month 2025 financial results: “We achieved strong financial momentum with the aselsanXt program we launched in 2024. Our second-quarter results confirmed once again that we will maintain this momentum in the first half of 2025.

Our revenue, which increased by over 11% in real terms, and our $2.8 billion in new contract volume, $1.3 billion of which is exports, demonstrate ASELSAN’s financial solidity. The 30% increase in our backlog of orders, reaching $16 billion, demonstrates that our company will continue its stable and strong growth.

We increased our EBITDA margin to 25% and reduced our Net Debt/EBITDA ratio to 0.57, strengthening both our profitability and financial health. Three factors are key to this success:

Focusing on higher-technology products and rapid product launches
Increased efficiency
Nationalization activities. We are increasing our revenue from new products. For example, in the first six months of this year, we introduced eight new products to our inventory for the first time. We achieved annual savings of $25 million through the integration of Artificial Intelligence into our processes. Despite the significant increase in our staff, we improved our per capita revenue by 1.6%. We also created a significant cost advantage through orders placed with our suppliers for products we nationalized.

I would like to emphasize this point: During a period in which we increased our R&D expenditures by 42%, our capital expenditures for mass production by 100%, and we also reduced our net debt, the positive realization in both our operating cash flow and free cash flow are the successful results of a comprehensive program. The 70-day improvement in the Cash Conversion Cycle compared to the same period of the previous year is another indicator of improved cash management. These achievements confirm that ASELSAN has the strength and discipline to finance not only the present but also the future.

The first half of 2025 is extremely productive not only in terms of financial indicators but also in terms of our strategic moves. We exhibited 10 of our new, high-tech, high-value products for the first time at the IDEF fair. Our systems, such as EJDERHA, our sky-high electromagnetic shield, which will be a critical component of the CELIKUBBE (Steel Dome), GÖKTAN, which will bring a new breath to ground-to-ground strike capabilities, and the ASELFLIR-600, the world’s best in its field, were met with great enthusiasm by international visitors.It caught their attention.

This successful performance has emerged thanks to our technological competence, financial performance, and the impact of recent global developments. ASELSAN’s market value on the Borsa Istanbul (Borsa Istanbul) confirms these achievements. By 2025, ASELSAN became the most valuable company on the Borsa Istanbul. Our market capitalization currently exceeds $21 billion. This development is a concrete demonstration of our investors’ trust in our company and their belief in our long-term potential.

We will continue to progress with the same determination in the second half of the year. We will maintain our R&D and investments. We will increase our mass production capacity, particularly in critical areas such as air defense, radar, smart munitions, guidance systems, and electro-optics. We will expand into new markets with our export-focused growth strategy. Increasing global security needs and geopolitical developments are creating an environment in which the defense sector will grow more rapidly. Countries are significantly increasing their defense budgets. By accurately interpreting these developments with our engineering strength and strategic foresight, we will continue to grow strongly and steadily both domestically and internationally with our technologies that will make a difference in the future warfare environment. Signed Contracts and Backlog Orders

The intense interest in ASELSAN’s products, both domestically and internationally, continued in the first half of 2025. As ASELSAN continues to take firm steps toward becoming a global company, new contracts signed by ASELSAN totaled US$2.8 billion, a 10% increase compared to the same period of the previous year. Direct and indirect export agreements accounted for US$1.3 billion (45%) of these new contracts. ASELSAN’s Backlog Orders reached US$16 billion in the first half of 2025, reaching historic highs in all of these areas.

Significant Contracts

1st Quarter 2025

A contract for the export of military communication systems signed with an international customer,

A contract for the export of radar, weapon, air defense, and data link systems for naval platforms signed with an international customer,

A contract for the export of Airborne Electro-Optical payloads signed with an international customer Contract,

A contract for the export of electronic warfare, communication, radar, electro-optical, and remote-controlled weapon systems for use by international customers,

A contract for the procurement of next-generation radar systems signed with the Presidency of Defense Industries of the Republic of Turkey,

A contract for the procurement of Public Safety Communication Systems signed with the Presidency of Defense Industries of the Republic of Turkey,

A contract for the procurement of Railway Signaling Systems signed with Turkey Rail System Vehicles Industry Inc. (TÜRASAŞ),

A contract for the procurement of land vehicle payloads with a domestic customer.

2nd Quarter 2025

A contract for the procurement of radar, weapon, air defense, and data link systems signed with an international customer for naval platforms,

A contract for the procurement of military communication systems signed with an international customer,

A contract for the procurement of guidance kits and communication systems signed with an international customer,

A contract for the procurement of guidance kits and communication systems signed with the Turkish Rail System Vehicles Industry A contract was signed with TÜRASAS for the supply of subsystems for use in high-speed trains.

A contract was signed with BMC Defense Industry and Trade Inc. for the supply of land vehicle payloads.