Key Highlights from the 2025 Financial Reports (English)
The key financial figures for Astor Enerji A.Ş. and its subsidiaries for the fiscal year ending December 31, 2025, are as follows:
• Net Sales and Revenue: The Group generated a total revenue of 35,290,767,390 TL in 2025. This includes 21.47 billion TL from domestic sales and 14.06 billion TL from export sales.
• Net Profit for the Year: The net profit increased to 7,668,909,328 TL in 2025, compared to 6.58 billion TL in the previous year.
• Total Assets and Equity: As of year-end, total assets reached 50,684,431,646 TL, and total equity stood at 33,280,133,403 TL.
• Earnings Per Share (EPS): The earnings per share rose from 6.59 TL in 2024 to 7.68 TL in 2025.
• Hyperinflationary Accounting: The financial statements were prepared in accordance with TAS 29, resulting in a net monetary position loss of 8,068,556,858 TL.
• R&D and Strategic Acquisitions: The company invested 258,962,430 TL in research and development. Additionally, Astor Enerji expanded its international footprint by acquiring 100% of Astor RO Energy S.R.L. in Romania, which holds a solar energy license.

Beyond the Transformers: 5 Impactful Realities of Astor Enerji’s 2025 Financial Performance

How does a regional manufacturing giant navigate aggressive growth targets while battling the relentless economic headwind of hyperinflation? For Astor Enerji A.Ş., a critical architect of the global energy transition, the answer is found in a delicate balance of international expansion and rigorous capital allocation. As of the independent auditor’s report dated February 17, 2026, Astor’s 2025 consolidated financial statements reveal a company undergoing a profound strategic pivot—one that moves beyond traditional manufacturing into high-stakes infrastructure and global services.

While the headline revenue figures are striking, the sophisticated investor must look deeper into the “Key Audit Matters” identified by Grant Thornton to understand the true trajectory of this Turkish powerhouse.

1. The “Inflation Tax”: Accounting for an TL 8.06 Billion Monetary Drag

The most defining characteristic of Astor’s 2025 report is the application of TAS 29 (Financial Reporting in Hyperinflationary Economies). Because the Turkish Lira remains the functional currency of the Group’s core operations, all figures have been restated to the purchasing power of December 31, 2025.

For the Senior Analyst, the “honest view” of performance is found in Note 27. The Group recorded a staggering Net Monetary Position Loss of TL 8.06 billion for the year. This figure represents the real economic erosion of holding monetary assets in a hyperinflationary environment. Without this “inflation filter,” Astor’s growth might appear as a series of phantom profits; with it, we see a company aggressively outrunning a massive inflationary drag to still post a net profit of over TL 7.6 billion.

“In accordance with TAS 29, consolidated financial statements and corresponding figures for previous periods have been restated for the changes in the general purchasing power of Turkish Lira and, as a result, are expressed in terms of purchasing power of Turkish Lira as of the reporting date.” — Grant Thornton Independent Auditor’s Report

2. Working Capital Tension: The 11.7 Billion TL Credit Balancing Act

A striking feature of the 2025 balance sheet is the scale of trade receivables, which reached TL 11,757,620,526, or roughly 33% of the Group’s total assets. This creates a significant working capital strain, signaling a heavy dependency on customer credit to fuel the sales engine.

To mitigate this, Astor utilizes a “simplified approach” under TFRS 9 to measure impairment. Because the Group’s receivables do not contain a “significant financing component,” they bypass the general credit risk stages and move directly to recognizing Lifetime Expected Credit Losses (though the source translation occasionally refers to these as “lifelong”). This model requires significant management judgment regarding historical default rates and current market conditions to ensure that a third of the company’s asset base isn’t being masked by uncollectible debt.

3. Geopolitics as Strategy: Moving Beyond the Turkish Border

Astor is rapidly evolving from a local manufacturer into a global entity with diversified legal liabilities and operational footprints. The 2025 report highlights a shift toward “installation and assembly” services in key international corridors.

The Group’s international expansion is categorized by two distinct structures:

• Astor RO Energy S.R.L (Romania): A 100% owned subsidiary focused on solar power generation. Notably, Astor paid a premium for market entry here, recording TL 123.6 million in provisional goodwill related to this acquisition.
• International Branches: The Zaragoza Branch (Spain) and the Baghdad Branch (Iraq) are focused on the assembly and installation of electrical equipment, allowing Astor to capture higher-margin service revenue within the EU and Middle East.

This geographic mix proves that Astor is no longer just shipping transformers; it is planting physical flags and managing the “installation and assembly” life cycle in the field.

4. Capital Allocation: Betting on the Green Infrastructure Pivot

Astor’s capital expenditure strategy is visible in its TL 3.38 billion “Construction in progress” line item. This isn’t just maintenance; it is a concentrated bet on electric vehicle (EV) charging stations and new factory capacity.

This physical growth is protected by a sophisticated R&D engine. By capitalizing development costs under Turkish Law No. 5746, Astor is effectively funding its pivot into the “next” wave of energy infrastructure through innovation-linked tax incentives.

“Group has established a Research and Development (R&D) Center to benefit from incentives and exemptions under Law No. 5746, ‘Law on Supporting Research and Development Activities, issued by the Ministry of Industry and Technology of the Republic of Turkey… Group has received the R&D Center certificate from the Ministry.” — Notes to the Consolidated Financial Statements

5. Scaling Efficiency: The Talent Surge and Personnel Drag

To power this expansion, Astor’s workforce surged from 2,122 employees in 2024 to 2,478 by the end of 2025. However, a Senior Analyst looks past the headcount to the cost of human capital: Personnel Expenses (Note 18) rose to TL 2.29 billion.

Despite an 11% increase in staff and the associated rising costs of labor in an inflationary market, the Group’s ability to maintain a profit margin resulting in TL 7.6 billion in net income suggests a successful scaling of operations. The core question remains whether the revenue per employee can continue to stay ahead of the rising salary floors required to retain technical talent in Ankara and abroad.

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A Forward-Looking Summary

Astor Enerji is a high-growth entity successfully navigating a complex regulatory and inflationary environment while aggressively diversifying its product and geographic mix. However, the 2025 report reveals an emerging tension in the Group’s liquidity position.

A final thought for the sophisticated investor: Between December 2024 and December 2025, Astor’s Cash and Cash Equivalents plummeted from TL 6.1 billion to TL 1.27 billion, a result of heavy investment in inventories and construction. As the company pivots from manufacturing components to operating solar fields and EV stations, can they maintain their 33% trade receivable ratio and high personnel costs without hitting a significant liquidity wall?

Briefing Document: Consolidated Financial Performance and Audit Analysis of Astor Enerji A.Ş. (2025)

Executive Summary

This briefing document provides a comprehensive synthesis of the consolidated financial statements and independent audit report for Astor Enerji A.Ş. (“the Group”) for the fiscal year ending December 31, 2025. The report, audited by Eren Bağımsız Denetim (a member firm of Grant Thornton International), presents an unqualified opinion, stating that the financial position and performance of the Group are fairly represented in accordance with Turkish Financial Reporting Standards (TFRS).

Critical takeaways from the 2025 reporting period include:

• Hyperinflationary Adjustments: Financial statements have been restated in accordance with TAS 29 to reflect the purchasing power of the Turkish Lira (TL) as of December 31, 2025.
• Strong Profitability: The Group reported a net profit for the year of TL 7.67 billion, an increase from TL 6.58 billion in 2024.
• Revenue Stability: Total revenue reached TL 35.29 billion, supported by a significant export presence (TL 14.06 billion).
• Asset Composition: Trade receivables remain a primary asset, totaling TL 11.76 billion and representing 33% of total assets, flagged as a Key Audit Matter.
• Strategic Expansion: The Group expanded into the Romanian solar market through the acquisition of Astor RO Energy S.R.L. and continued investments in electric vehicle charging stations and new factory capacity.

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1. Corporate Profile and Scope of Operations

1.1 Organizational Background

Astor Enerji A.Ş. was established in 1983 and has evolved through several name changes to its current form. It has been listed on Borsa İstanbul since January 18, 2023. The Company is headquartered in Sincan, Ankara, operating from a primary factory commissioned in 2017 (78,000 m²) and a mechanical manufacturing factory commissioned in 2020 (27,000 m²).

1.2 Principal Activities

The Group’s core business involves the manufacture of:

• Transformers (oily type, dry type, power, and special types).
• Medium and high voltage switching products.
• Concrete and sheet metal kiosks and compact substations.
• After-sales support, including field installation, commissioning, and testing.

1.3 Group Structure and Workforce

As of December 31, 2025, the Group employed 2,478 personnel (up from 2,122 in 2024). The consolidation includes the following entities:

Note: Asener Enerji Elektrik was sold on December 29, 2025, and excluded from the current consolidation.

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2. Independent Audit and Key Audit Matters

The independent auditor, Emir Taşar (Partner at Eren Bağımsız Denetim), issued an unqualified opinion. However, the audit highlighted two “Key Audit Matters” (KAM) requiring significant judgment.

2.1 Trade Receivables

Trade receivables represent 33% of the Group’s total assets (TL 11,757,620,526).

• Risk: The collectability of these receivables involves significant management judgment and estimates regarding credit risk and the application of TFRS 9 (Expected Credit Loss model).
• Audit Response: The auditors performed analytical aging analysis, confirmed balances via samples, evaluated TFRS 9 compliance, and investigated ongoing legal cases related to collections.

2.2 Application of Hyperinflationary Accounting (TAS 29)

The Group’s functional currency (TL) is considered the currency of a hyperinflationary economy.

• Requirement: All non-monetary items, equity, and profit/loss components were restated using the Consumer Price Index (CPI) to reflect current purchasing power.
• Impact: The adjustment coefficient for 2025 was 1.00000, based on a three-year inflation rate of 211%.

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3. Financial Performance Analysis

3.1 Statement of Profit or Loss (Consolidated)

The following table summarizes the comparative performance for 2025 and 2024 (all figures in TL, restated for Dec 31, 2025):

3.2 Key Operational Drivers

• Export Growth: Revenue from export sales grew to TL 14.06 billion, while domestic sales slightly decreased to TL 21.47 billion.
• R&D Commitment: The Group operates a certified R&D Center under Law No. 5746, with total research and development expenses reaching TL 258.96 million in 2025.
• Incentives: The Group utilizes significant investment incentive certificates, providing benefits such as VAT exemptions, customs duty exemptions, and an 80% reduction in corporate tax with a 40% investment contribution rate.

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4. Financial Position and Liquidity

4.1 Assets and Investments

Total assets grew to TL 50.68 billion in 2025 from TL 39.99 billion in 2024.

• Current Assets: Dominated by trade receivables (TL 11.76B), short-term financial investments (TL 11.27B), and inventories (TL 7.80B).
• Non-Current Assets: Included property, plant, and equipment (TL 9.99B), which features ongoing investments in charging stations and new factory facilities.
• Goodwill: A provisional goodwill of TL 123.69 million was recorded following the acquisition of the solar-licensed Astor RO Energy S.R.L.

4.2 Liabilities and Equity

• Financial Debt: Short-term borrowings increased to TL 4.54 billion. Total financial liabilities reached TL 4.62 billion.
• Equity: Total equity stands at TL 33.28 billion. The Group paid dividends totaling TL 1.63 billion during 2025.
• Provisions: A significant provision of TL 238.95 million was recognized for a Competition Authority fine, which the Company is currently litigating.

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5. Risk Management

5.1 Currency Risk

The Group is exposed to fluctuations in USD, EUR, IQD, GBP, and RON.

• Net Foreign Currency Position: TL 6.18 billion (surplus).
• Sensitivity: A 10% appreciation of foreign currencies against the TL would result in a profit gain of TL 617.68 million.

5.2 Credit and Liquidity Risk

• Credit Risk: Managed by limiting transactions to reputable third parties and obtaining guarantees. The maximum exposure is the carrying value of financial assets (TL 11.76B in trade receivables).
• Liquidity Risk: The Group maintains a debt-to-capital ratio where net cash exceeds financial debt, resulting in a healthy capitalization structure. As of year-end, cash and equivalents stood at TL 1.28 billion.

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6. Regulatory and Legal Matters

• Competition Authority Fine: An administrative fine was imposed (Decision 25-10/246-126). While a provision has been set aside, the Group has filed a lawsuit and the legal process is ongoing.
• Tax Legislation: The general corporate tax rate is 25%. However, exporting and producing institutions receive a 1 to 5 point discount on eligible earnings.
• Subsequent Events: No significant events occurred after the balance sheet date (December 31, 2025) that would require adjustment to the financial statements.