1. Introduction: The Giant You Touch Every Day But Hardly Notice
Kordsa is a global powerhouse that often goes unnoticed despite its massive influence in its industry. As highlighted in its annual report, “Kordsa reinforces 1 out of every 3 automobile tires and 2 out of every 3 airplane tires worldwide.” This quiet dominance reveals just how central the company’s technology is to our daily lives.
However, behind this global success story, Kordsa’s latest financial and activity reports signal a period filled with challenges, strategic transformations, and surprises. The figures and management decisions provide crucial clues about how the company is adapting to harsh market conditions and shaping its future.
In this analysis, we delve between the lines of Kordsa’s latest public reports to uncover the five most striking and unexpected findings—offering deeper insight into the company’s current stance and long-term vision.
2. An Unexpected Move: Why Did Kordsa Sell Its Construction Reinforcement Business?
One of Kordsa’s most notable recent strategic moves came with the Board of Directors’ decision dated October 1, 2025. The company announced the sale of its Construction Reinforcement business line, known under the “Kratos” brand, to Afyon รimento Sanayi T.A.ล.
According to a valuation report prepared by Ernst & Young, the sale price was set at USD 10,000,000 (excluding VAT). The company explained the official rationale as “focusing on its core activities—tire reinforcement and composite technologies—in line with its strategic priorities.”
Beyond being a simple asset sale, this move reflects a deliberate strategic focus: a clear effort to return to core competencies, strengthen the balance sheet, and improve operational efficiency during a challenging period.
3. Financial Turbulence and Strategic Support from Sabancฤฑ
Kordsa’s Q3 2025 financial results clearly illustrate the difficulties it faces. Sales revenue fell 15.9% year-over-year, resulting in a quarterly net loss of USD 10.4 million. The activity report cites several causes: the gradual recovery of production after a flood at the Indonesia plant, intense price competition in the tire reinforcement segment, and pricing pressure from competitors such as China.
In response, management announced a capital increase plan to strengthen equity, aiming to raise issued capital from ₺194,529,076 to ₺484,305,475. But the most critical intervention came from the main shareholder, Hacฤฑ รmer Sabancฤฑ Holding A.ล.
On October 10, 2025, Sabancฤฑ Holding provided a ₺2,060,570,002.92 capital advance, sending a strong signal of market confidence before the planned increase. This was not just a “lifeline” but a strategic and preventive move that enabled the process to begin smoothly without jeopardizing shareholder participation.
The strategic significance of this step became clear when all funds were used to pay principal and interest on a loan from the International Finance Corporation (IFC)—a move that not only met cash needs but also represented a deliberate balance sheet cleanup strategy eliminating a major international debt.
4. Sustainability Is Not a Slogan—It’s an R&D Strategy
Kordsa’s motto, “Reinforcing Life,” stands out in the reports as a tangible business strategy supported by real R&D projects. The company’s research efforts directly aim to develop products that help customers achieve their sustainability goals.
Examples include:
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Tire Reinforcement: Yarns and cords made from 40% mechanically recycled Nylon 66, 100% chemically recycled polyester, and bio-based raw materials.
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Composite Technologies: Lightweight materials that reduce fuel consumption and carbon emissions in aerospace and other sectors by lowering vehicle weight.
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Compounding: Engineering plastics under the “Exenco” brand that incorporate recycled and bio-based materials.
In addition to these technical advances, the “Ksabรฃo” project in Brazil highlights Kordsa’s creative sustainability approach: cafeteria waste oils are turned into eco-friendly soap, contributing to the circular economy.
The company’s innovation capability is also evident in the numbers:
As of September 2025:
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1,080 Patent Applications
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608 Registered Patents
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2 R&D Centers
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3 Technical Centers
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111-Person R&D Team
5. A Double-Edged Sword for Shareholders: Capital Increase and Dividend Pause
Kordsa’s official dividend policy states that it “adopts the principle of distributing all distributable profit as cash and/or bonus shares.” However, the recent financial picture shows that this principle has been put on hold. The company’s last three years of gross dividend payments summarize this clearly:
| Year | Amount (₺) |
|---|---|
| 2024 | - |
| 2023 | - |
| 2022 | 57,000,000.00 |
The company distributed dividends from its 2022 profits in 2023 but decided not to pay dividends from 2023 and 2024 earnings. This means shareholders have received no cash returns for two consecutive years.
At the same time, Kordsa is asking current shareholders to inject new cash through a paid capital increase—clearly showing its financial priorities: preserving cash flow, strengthening the balance sheet, and repaying debts such as the IFC loan have taken precedence over immediate shareholder returns.
This situation is a direct consequence of recent net losses and the company’s deliberate deleveraging strategy.
6. Conclusion: Changing Course in the Storm
Kordsa’s latest reports show a global leader at a critical crossroads. While battling major operational and financial challenges, the company is strategically sharpening its focus on core activities and relying on strong backing from its parent, Sabancฤฑ Holding. Decisions like selling the construction reinforcement unit and initiating a capital increase mark tangible steps in this restructuring phase.
Despite unfavorable conditions, Kordsa’s commitment to R&D and sustainability remains the cornerstone of its long-term strategy. This turbulent period is both a test of resilience and an opportunity to lay the groundwork for future growth.
The key question for investors and industry observers is clear:
Will Kordsa’s strategic moves and unwavering focus on innovation be enough to make it more resilient and competitive in the years ahead?