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 third quarter of 2025. ASELSAN’s revenue for the first nine months of 2025 grew by 12.3% in real terms compared to the same period last year, reaching 90.9 billion TL. Deliveries for the CELIKKUBE, Radar, Electro-Optical, Electronic Warfare, Security, Naval, and Military Communication Systems accounted for a significant portion of this revenue.

Keeping operational efficiency and corporate transformation strategies at the core of its operations, ASELSAN’s EBITDA margin for the period reached 25%, a 100 basis point increase compared to the same period of the previous year. ASELSAN’s EBITDA generated from its operations reached 22.7 billion TL, an 18% increase in real terms compared to the previous period. ASELSAN, which has maintained its Business Acquisition/Sales ratio, a key indicator of growth, at 2 for two consecutive years, maintained its momentum, raising this ratio to 2.5 in the first nine months of 2025, maintaining its position above the sector average. The €1.65 billion contract signed by ASELSAN for the supply of air defense systems during this period was recorded as the largest single new contract awarded in 2025. During the same period, the company’s balance sheet grew by 6%.

R&D EXPENDITURES AND INVESTMENTS IN MASS PRODUCTION CONTINUED TO INCREASE

ASELSAN, the leader in Turkey in the number of R&D projects, saw its R&D expenditures increase by 40% compared to the previous year, reaching $925 million. Along with R&D expenditures, ASELSAN’s fixed investment expenditures for strengthening its mass production infrastructure have nearly doubled compared to the same period of the previous year, reaching US$200 million.

These R&D expenditures and investments in mass production will strengthen ASELSAN’s technology development and production capabilities and significantly contribute to the company’s sustainable growth. With the implementation of new capacity increases in the production of ÇELİKKUBBE components in the coming periods, ASELSAN’s global role in the defense industry will further expand.

The company, which effectively implemented its financial sustainability strategy, saw its financial debt decrease by 14% in September 2025 compared to the same period of the previous year. The share of financial debt in the company’s assets also decreased from 15.7% to 11.8% compared to the same period. The company’s commercial debt also decreased by 13% compared to the end of 2024.

As a result of these developments, net debt decreased by 40% compared to the same period of the previous year. Thus, ASELSAN’s Net Debt/EBITDA ratio, which was 1.27 in the first nine months of 2024, showed a strong improvement this period, reaching 0.57. Thus, the company maintained its position below the sector average. Cash flow improvement accelerated during the first nine months of the year, as investment expenditures for R&D and mass production continued uninterrupted, and financial debt decreased.

ASELSAN improved its turnover, backlog, signed export contracts, operational margins, balance sheet size, and numerous other financial indicators, and completed the first nine months of 2025 with strong results. The increase in the company’s export-focused order structure, effective financial management, strong cash flow, and increased investment expenditures supported ASELSAN’s long-term sustainable growth.

ASELSAN GENERAL MANAGER AHMET AKYOL ASSESSED THE FINANCIAL RESULTS FOR THE 9-MONTH 2025 YEAR:

We see the outcomes of our aselsanXt program, which we implemented for ASELSAN’s development and future, more concretely with every announced financial statement. We maintained the strong growth momentum we achieved recently in the third quarter of the year. We achieved 12.3% real growth in the first nine months of the year. While maintaining our growth performance, we also maintained our strong momentum in new contracts. With the signing of new contracts worth $5.7 billion, we increased our Backlog to $17.9 billion, a record high in our history. These figures are the most concrete indicator of the trust our customers place in us.

When we look at our balance sheet, we see significant improvements in all financial metrics such as turnover, profitability, debt, and cash flow compared to the same period last year. Our financial performance demonstrates how well ASELSAN is managed, how it’s not only growing but also growing healthily and efficiently, and how bright the future holds.

As part of aselsanXt, we declared this year a year of productivity within the company. We are reaping the rewards of the steps we took to achieve this goal. Compared to the same period of the previous year, the approximately 10 percent decrease in our general administrative expenses contributed to a 100 basis point improvement in our net profit margin. Digital transformation and process improvement are well underway.

The steps we took to improve our capabilities also had a positive impact on productivity growth. Furthermore, the introduction of high-value-added products was a significant factor in the improvement of our EBITDA margin.

Today, ASELSAN develops products that few international companies can produce. For example, our AESA-based MURAD Fire Control Radar, which recently completed its maiden flight with KIZILELMA, is a prime example of this. Using this radar, we also fired an air-to-air missile from the F-16 platform. The commencement of mass production of the ALTAY main battle tank, which carries more than ten of ASELSAN’s critical systems, was also a significant development.

The third quarter was a historic period for ASELSAN. At a ceremony attended by our President, we delivered 47 ÇELİKKUBBE components to our heroic army. At this historic ceremony, we also laid the foundation for our new OĞULBEY Technology Base. This $1.5 billion investment has been recorded as the largest single defense industry investment in the history of the Republic. Upon completion, the facility will be the largest air defense facility in Europe. This will significantly increase ASELSAN’s production capacity in many areas, particularly air defense systems.

Such investments are not only important for the acquisition and production of critical technologies but also valuable because they will provide employment for our qualified young people. As a company that develops and produces high technology, ASELSAN continues to be a center of attraction for our youth. The increasing number of qualified young people returning from abroad to work at ASELSAN fills us with pride. We will continue to invest in our employees, the true heroes behind these achievements that bring pride to our nation, and in the youth of the future.

The intense interest in ASELSAN’s products, both domestically and internationally, continued in the first nine months of 2025. As ASELSAN continues to take firm steps toward becoming a global company, new contracts signed by ASELSAN reached $5.7 billion, a 76% increase compared to the same period of the previous year. Of the new contracts, $1.45 billion (25%) consisted of direct and indirect export agreements.

ASELSAN’s backlog of orders rose to $17.9 billion in the first nine months of 2025, a historic high.

Signed Major Contracts
1st Quarter 2025
A contract for the export of military communication systems signed with an international customer,

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

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

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 was signed with the Presidency of Defense Industries of the Republic of Turkey.

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

2nd Quarter 2025
A contract for the procurement of radar, weapon, air defense, and data link systems for naval platforms was signed with an international customer.

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

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

Türkiye Raylı Sistem Araçları Sanayi A.Ş. (TÜRASAŞ) for the procurement of subsystems to be used in high-speed trains.

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

Q3 2025
A contract for the procurement of air defense systems was signed with an international customer.

A contract for the procurement of radar systems was signed with an international customer.

A contract for the procurement of radar and command and control systems was signed with an international customer.

A contract for the procurement of Air Defense Systems was signed with the Presidency of Defense Industries of the Republic of Turkey.

A contract for the procurement of Artificial Intelligence-Assisted Urban Security Management Systems was signed with the Presidency of Defense Industries of the Republic of Turkey.