KONTROLMATİK TEKNOLOJİ ENERJİ VE MÜHENDİSLİK A.Ş.

Earnings Release • Aug 14, 2025

2Q25 Financial Results ISTANBUL, TÜRKİYE, August 14, 2025

(BIST: KONTR)

The second quarter of 2025 was marked by strong sales performance, resulNng in significant revenue growth in the first half of the year. However, during the same period, higher financing costs, delays in project collecNons, and expense increases related to strategic growth investments placed temporary pressure on short-term profitability.

Summary Income Statement, m USD	After Inflation Adjustments
	2Q24	2Q25	Change		1H24	1H25	Change
Revenue	65,6	95,9	46%		102,7	150,4	46%
Gross Profit	17,1	15,0	-12%		24,2	25,2	4%
Gross Profit Margin	26,0%	15,6%	-10%		23,6%	16,8%	-7%
Operating Profit	14,8	12,9	-12%		15,1	14,6	-3%
Operating Profit Margin	22,6%	13,5%	-9%		14,7%	9,8%	-5%
Profit Before Financing Expenses	14,5	12,1	-17%		14,8	15,2	2%
Profit from Continuing Operations	7,7	-4,4	A.D.		20,3	0,73	-96%
Net Profit Attributable to Equity Holders	11,7	-5,0	A.D.		25,3	2,3	-91%
EBITDA (*)	19,6	17,4	-11%		25,1	24,1	-4%
EBITDA Margin	29,8%	18,2%	-12%		24,5%	16,0%	-8%

>> The investor presenta/on outlining the strategic roadmap has been updated and is available on the Kontrolma/k website.

* EBITDA calcula-on method: Calculated by adding deprecia-on to opera-ng income.

Sales Performance:

In the second quarter of 2025, our revenue increased by a strong 46% year-on-year, reaching 95.9m USD (2Q24: 65.6m USD). This notable growth was driven by higher revenues from domesJc and internaJonal EPC and energy storage projects, as well as contribuJons from expansion into new markets.

Order / Sales:

KontrolmaJk, maintaining its strong posiJon in system integraJon, is successfully execuJng contracts worth more than 600m USD. The order backlog of 468m USD backlog, supported by orders from new projects, reinforces the company's sustainable growth strategy while also strengthening its financial outlook.

As of the second quarter, the signing of contracts for the BOTAŞ Adapazarı Compressor StaJon (78m USD) and the İSKİ Wastewater Treatment Plant (64m USD) projects have been completed and these are expected to make significant contribuJons to Türkiye's energy and water infrastructure while also strengthening KontrolmaJk's posiJon in the internaJonal market.

The producJon processes of our grid-scale energy storage systems by our subsidiary Pomega has been commissioned, and contracts totaling 80m USD have recently been signed in both domesJc and internaJonal markets. Aiming to bring its technological capabiliJes to the global market, Pomega has signed a strategic cooperaJon agreement with U.S.-based Our Next Energy Inc. (ONE) for the producJon of a total of 7 GWh of babery cells. Leveraging its strong posiJon in the energy sector with LFP babery technology, Pomega aims to expand its presence in the U.S. market and enhance its regional export capacity.

In addiJon, the technology transfer for the high-voltage Gas-Insulated Switchgear (GIS) producJon facility with Chint Electric has reached its final stage, and the manufacturing process for the Osmaniye GIS project has started. The Osmaniye gas-insulated substaJon project will serve as an important reference for domesJcally manufactured GIS projects.

Profitability Indicators:

In the second quarter of 2025, our gross profit stood at 15.0m USD (2Q24: 17.1m USD). The decline in gross profit was mainly due to the following temporary factors:

• Although significant expenditures were made for ongoing projects, a porJon of these works has not yet been invoiced, meaning that the revenues have not been fully reflected in this period. This temporarily reduced profit margins.
• Despite a slowdown in inflaJon, its relaJvely high level led to increases in expense items due to inflaJon accounJng, while the relaJvely stable exchange rates acted as a limiJng factor on revenue growth.

• In addiJon, cost inflaJon, parJcularly in labor, energy, and raw materials, caused some projects to fall short of targeted margins.

In parallel with the contracJon in gross profit margin, EBITDA also came under similar pressure, amounJng to 17.4m USD, with the margin decreasing from 29% to 18% compared to 2Q24.

In summary, despite our operaJons conJnuing at full pace, our profitability was temporarily affected by previously executed strategic investments, periodic shihs in invoicing schedules, differences between inflaJon and exchange rate movements and ramp-up processes related to capacity expansion.

OperaNng Expenses and Investments:

In the second quarter of 2025, our general administraJve, markeJng, and R&D expenses amounted to 11.0m USD, compared to 7.1m USD in the same period of the previous year. Despite this increase, these expenses remained close to last year's level as a percentage of sales, at 11.5% versus 10.9%. The increase in general administraJve expenses is driven by higher operaJonal costs in line with the expanding organizaJonal structure, as well as the costs of overseas offices established in growing markets. This reflects the company's scaling process and the establishment of a strong corporate structure to support exisJng investments. With acceleraJng revenue growth in the coming quarters and effecJve cost management, the share of these expenses in total revenue is expected to decline.

Financing Expenses:

The main reasons for the increase in our financing expenses in the second quarter of 2025 were the financing of investments and the higher working capital requirements. The doubling of our group's revenue last year significantly increased its working capital needs. In addiJon, high interest rates placed further pressure on financing costs.

Strong Growth in Fixed Assets:

In the first half of 2025, our fixed assets grew by 14.1%, reaching 410.2m USD (2024 year-end: 359.9m USD). This increase was supported by producJon capacity investments, equity contribuJons to subsidiaries, and technology-focused asset acquisiJons, reflecJng our strong commitment to long-term growth objecJves.

General Overview and ExpectaNons:

(+) Our strong order backlog in system integraJon and technology-focused EPC projects supports revenue visibility for the next 12–18 months. Our year-end consolidated revenue is expected to be in the range of USD 400–450 million.

(-) High interest rates, volaJle inflaJon, and uncertainJes in global demand condiJons conJnue to exert pressure on profitability across the sector in the short term.

(+) Our company has received approval from the Capital Markets Board for the issuance of Eurobonds of up to 100m EUR and has iniJated. This step will contribute to converJng short-term TRY debt into medium- to long-term foreign currency–based financing, reducing the cost of capital, and strengthening the balance sheet's resilience.

(+) In line with the European Green Deal and regulaJons aimed at Türkiye's energy transiJon, the growing demand for sustainable infrastructure projects highlights our company's integrated soluJons in energy, automaJon, and digitalizaJon.

(+) The projects we undertake on a global scale remove our dependence on any single market and opJmize risk diversificaJon. Projects carried out simultaneously in the Americas, Europe, Africa and the Middle East support this strategic diversity.

(+) Our growing share in projects supported by insJtuJons such as the World Bank, EBRD, and KfW reinforces our company's credibility and sustainable growth strategy. In this context, the proporJon of highly collateralized projects in our total porrolio has also increased.

(+) Our subsidiaries have also started contribuJng to revenue:

• In the second quarter of 2025, Emek secured the right to enter into the contract phase by submisng the most advantageous technical and financial bid in a major public tender organized by TEİAŞ. During this period, Emek increased its share of internaJonal orders from below 50% in 2023 to currently over 60%, conJnuing its determined internaJonal growth with an expanding distributor network and rising orders in the Middle East, Africa, and Asia markets.
• Within McFly, the company expanded its product porrolio with new modules for the Orion series cobots and innovaJve projects such as the barista robot, establishing a solid foundaJon for scalable revenue models.
• At Plan-S, new satellite launches and the commissioning of a ground staJon in Sweden have expanded service coverage and enhanced commercializaJon potenJal.

(+) While conJnuing our sustainability efforts at full speed, our first TSRS-compliant report will be published simultaneously with the second quarter 2025 financial statements. This report aims to contribute to financial decision-making processes by providing informaJon on climate-related risks and opportuniJes.

Upcoming Key Financial Dates:

November 10, 2025:

• Release of 3Q2025 financial results

Disclaimer: With the Capital Markets Board BulleZn dated 28.12.2023 and numbered 2023/81, it was publicly announced that issuers and capital market insZtuZons subject to the Capital Markets Board's financial reporZng regulaZons would be required to apply inflaZon accounZng in accordance with TAS 29, starZng from the annual financial reports for the fiscal periods ending on or aber 31.12.2023.

Regarding the second quarter 2025 financial results presented herein, the financial data of our Company, which applies Turkish Accounting/Financial Reporting Standardsin accordance with the Capital Markets Board's Decision dated 28/12/2023, have been prepared based on inflation-adjusted financial statements in compliance with TAS 29.

Kontrolmatik Teknoloji Enerji ve Mühendislik A.Ş., including any member of its Board of Directors, executives, employees, or any other person, cannot be held responsible for any damages that may arise from the use of the contents of this presentation.