Alarko Boston Consulting Group Matrix

Alarko is strategically expanding its renewable energy portfolio, with a significant focus on solar power. Turkey's solar generation experienced a substantial 39% increase in 2024, highlighting the market's robust growth potential.

The company's investments in energy storage systems complement its solar ventures, positioning Alarko to capitalize on the evolving energy landscape. This dual approach aims to secure a strong market position and establish future leadership in these high-growth sectors.

Alarko's modern greenhouse farming initiatives in Turkey and Kazakhstan are prime examples of Stars, driven by aggressive expansion plans. The company aims to reach 5 million square meters of greenhouse capacity in each country, significantly increasing its global ranking. This strategic push into agriculture is supported by innovative products like its hybrid microgranule fertilizer, launched in 2024, which is the first of its kind in Turkey and the largest in Europe, positioning Alarko for substantial market share capture.

The company's growing renewable energy portfolio, particularly in solar power, also falls into the Stars category. Turkey's solar generation saw a remarkable 39% increase in 2024, indicating a strong market for these investments. Alarko's focus on energy storage systems further solidifies its position to benefit from the evolving energy landscape.

Alarko Yatırım, established in 2023, is Alarko Holding's high-growth equity investment arm, with a portfolio of $90 million by the end of 2024. Its focus on robust businesses and growth equity funds targets emerging industries and future leaders. Similarly, Alarko's electricity distribution network expansion via Meram, aiming to grow its Regulated Asset Base (RAB) from $690 million in 2024 to $1 billion by 2028, represents a Star segment due to its high growth potential within a stable utility market.

Alarko's Karakuz and Gönen Hydroelectric Power Plants (HEPPs) represent established, mature assets within its energy portfolio. These facilities consistently contribute to the company's electricity generation, providing a reliable and stable energy source.

These operational HEPPs are key contributors to Alarko's energy segment's consistent cash flow. Despite potential fluctuations due to seasonal water availability, their established nature ensures a predictable revenue stream, positioning them as cash cows.

Alarko's established electricity generation, particularly the Cenal Thermal Power Plant, along with its Karakuz and Gönen Hydroelectric Power Plants, are significant cash cows. These mature energy assets consistently generate substantial cash flow, contributing a dominant portion of Alarko's revenue and EBITDA, as evidenced by the thermal plant's 89% revenue share in Q4 2024 and 99% EBITDA share for the full year 2024.

Alarko GYO's real estate portfolio, with a valuation of $407 million USD as of Q1 2025 and generating approximately $10 million USD annually in rental revenue, also functions as a key cash cow. This segment benefits from a high market share in a mature real estate market, providing stable and predictable income streams.

Alarko Carrier's core HVAC systems, supported by a 9.3% market share in cooling and an extensive service network, are reliable cash cows. These mature product lines consistently generate dependable cash flow due to strong brand recognition and established distribution channels.

Alarko's international trade activities, while low-growth, act as stable cash cows by leveraging existing networks to provide consistent revenue and predictable cash flow, bolstering the conglomerate's overall financial stability.

Alarko's Industry & Trade segment, primarily driven by Alarko Carrier, saw a stark 34% revenue drop in the first quarter of 2025, resulting in net losses. This downturn signals that established or less agile product lines within this division are struggling to maintain market share and profitability amidst a difficult global manufacturing and trade landscape.

Alarko's contracting business, Alsim Alarko, is firmly in the Dog quadrant, evidenced by a TRY 740 million loss in Q4 2024 and a TRY 129 million loss in Q1 2025. This segment's strategic review, including a potential share sale, highlights its status as a cash drain with low market share and profitability.

Similarly, Alarko Carrier's revenue dropped 34% in Q1 2025, leading to net losses, indicating established product lines are struggling. The Karabiga Imported Coal Power Plant also saw decreased generation in Q1 2025, facing limited growth due to Turkey's renewable energy focus.

Older, underperforming real estate assets within Alarko GYO also fit the Dog profile, characterized by low occupancy, such as a commercial property with over 25% vacancy. These assets tie up capital with minimal returns, requiring strategic decisions like divestment or repurposing.

The Bodrum Hillside project represents Alarko's strategic push into a burgeoning tourism segment, poised for operation by late 2025. This venture is designed to tap into the high-yield leisure market, with rental income anticipated to commence in 2026. As a new development, it currently sits in the investment-heavy, cash-outflow phase, lacking a defined market position.

Question Marks represent Alarko's new ventures with high growth potential but currently low market share, demanding significant investment. These initiatives, like the Kazakhstan greenhouse project and aviation foray, are in their early stages, requiring substantial capital to establish a market presence and achieve profitability. Their success hinges on strategic investment and market adoption, aiming to transition them into Stars.