Türkiye's Aselsan revenue surges 25% on strong H1 investments

Aselsan reported on Tuesday that its revenue rose 25% in real terms to 88.5 billion Turkish lira ($1.8 billion) during the first half of the year, driven by new contracts and substantial investments in production capacity and research, according to the defense firm's financial statement.

Financial performance

The company signed new contracts worth $4.9 billion in the first six months, marking a 72% increase from the same period last year, while its total order backlog climbed 45% to $23.2 billion on the back of strong domestic and international demand. Aselsan's earnings before interest, taxes, depreciation and amortization (EBITDA) reached $488 million with a margin of 26.3%, up 120 basis points from the previous year, and its net debt-to-EBITDA ratio improved slightly from 0.57 to 0.55.

Investment drive

The defense giant increased its capacity and scale investments by 195% to $323 million, commissioning 17,360 square meters of new production and test centers dedicated to smart munitions and defense systems to support its growing scale. Research and development spending focused on quantum computing and underwater systems jumped 41% to $804 million, while the company launched 19 robotic automation lines to enhance delivery speed and production quality, generating operational cash flow of $319.7 million. The firm maintained an equity ratio of 56% — well above sector averages — during the period.

Strategic outlook

Chief Executive Officer Ahmet Akyol stated that disciplined financial management would enable continued investment in future capabilities alongside a robust balance sheet. Aselsan expects its order backlog to exceed the $30 billion threshold starting next year, and has diversified into civilian projects including signaling technologies for Europe's fastest fully autonomous metro line and a new open-heart surgery device, while also achieving recognition as the first Turkish defense firm to join the Forbes Global 2000 list.