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Turkish defense giant Aselsan announced Tuesday it signed direct and indirect export contracts worth $1.3 billion in the first six months of 2025, representing a record achievement as the company continues its export-oriented growth strategy.
The defense firm's revenue increased 11.3% year-over-year in real terms to ₺53.7 billion ($1.32 billion) during the January-June period, driven by deliveries in air defense, electronic warfare, electro-optics, radar, avionics, security and weapon systems.
Aselsan's market capitalization has exceeded $21 billion, making it the most valuable company on Borsa Istanbul, according to company statements filed with the Public Disclosure Platform.
New contracts totaled $2.8 billion during the first half, marking a 10% increase compared to the same period in 2024. Of these new contracts, $1.3 billion (45%) consisted of direct and indirect export agreements.
The company's backlog orders expanded by 30% to $16 billion compared to the same period of the previous year, positioning Aselsan for continued growth.
Aselsan's earnings before interest, taxes, depreciation and amortization (EBITDA) margin increased by 100 basis points year-over-year to 25%. The EBITDA amount generated from operations reached ₺13.5 billion ($332,100) with a real increase of 15% compared to the previous period.
The company's research and development expenditures climbed 42% to $572 million during the reporting period, reinforcing Aselsan's position as Türkiye's leader in the number of R&D projects.
Infrastructure investments aimed at strengthening serial production capabilities doubled year-over-year, exceeding $100 million for the period.
Aselsan's financial debt-to-assets ratio decreased from 14.5% in the first six months of 2024 to 12.7% in the current period. Commercial debt declined by 21% compared to year-end 2024.
The company achieved a 38% reduction in net debt compared to the same period last year, bringing the net debt/EBITDA ratio down from 1.21 to 0.57, maintaining a position below sector averages.
Operating cash flows (OCF) reached ₺13.635 billion, while free cash flows (FCF) turned positive at ₺816 million during the first half of 2025.
Aselsan CEO Ahmet Akyol evaluated the six-month financial results, stating: "With the aselsaneXt program we launched in 2024, we had gained strong financial momentum. Our second-quarter results once again confirmed that we maintained this momentum in the first half of 2025."
"Our turnover, which we increased by more than 11% in real terms, and our new contract volume of $2.8 billion, $1.3 billion of which is exports, revealed how solid Aselsan's financial foundation is. The 30% increase in our backlog orders to $16 billion shows that our company will continue its stable and strong growth," Akyol said.
"Our market value currently exceeds $21 billion. This development is a concrete indication of our investors' confidence in our company and their belief in our long-term potential," Akyol stated.
Looking ahead, Akyol outlined the company's strategic direction: "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 particularly increase our serial production capacity in critical areas such as air defense, radar, smart ammunition, guidance systems and electro-optics."
During the first six months, Aselsan introduced eight new products to its inventory for the first time. The company achieved $25 million in annual savings through artificial intelligence integration in its processes.
Despite significant increases in personnel, per capita turnover improved by 1.6%. Cost advantages were created through orders for localized products with suppliers.
Akyol highlighted three key success factors: "We can highlight three key factors behind this success: focusing on higher technology products and rapid product launches, efficiency improvements, and localization activities."
"With our export-oriented growth strategy, we will expand into new markets," Akyol said, noting increasing global security needs and geopolitical developments.
"Countries are significantly increasing their defense budgets. With our engineering power and strategic foresight, by correctly reading these developments, we will continue to grow strongly and steadily both domestically and internationally with our technologies that will make a difference in future warfare environments," he concluded.
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