HL Mando (204320) Q2 2026 earnings summary

Executive summary

• Achieved resilient growth in Q2 2026 despite a stagnant market, driven by strong SDV-EV order wins and robust sales to leading EV makers in North America, China, and India.

• Global automotive parts manufacturer with diversified customer base and advanced R&D capabilities, focusing on safety, electrification, and autonomous driving technologies.

• Advanced future growth initiatives in robotics, e-HAECHIE, and software, with significant new business wins and strengthened local partnerships.

• Operates 27 consolidated subsidiaries across key markets including Korea, China, US, India, Europe, and South America.

• Maintains a stable capital structure, robust credit ratings (AA-), and a consistent dividend policy targeting 20% payout of controlling interest net income.

Financial highlights

• Sales reached KRW 2,495.3 bn in Q2 2026, up 3.9% year-over-year and 7.9% sequentially from Q1 2026.

• H1 2026 consolidated revenue: KRW 4,806.9 billion; operating profit: KRW 200.6 billion; net income: KRW 111.9 billion; EPS: KRW 2,161.

• Operating profit was KRW 107.0 bn in Q2 2026, up 2.8% year-over-year, with an operating margin of 4.3%.

• Net income rose to KRW 58.8 bn in Q2 2026, a significant increase from KRW 9.9 bn in Q2 2025.

• Total assets: KRW 7,566.2 billion; equity: KRW 3,119.1 billion; liabilities: KRW 4,447.2 billion.

Outlook and guidance

• Order backlog stands at KRW 59 tn, supporting further growth opportunities, especially in chassis-ADAS and new business areas.

• Continues to invest in electrification, ADAS, and global expansion, with a focus on high-growth regions and next-generation mobility solutions.

• Plans to expand software sales globally and diversify revenue streams through robotics and fire prevention technologies.

• Maintains a mid-term dividend policy of ~20% payout ratio and targets stable capital structure.

• Expects ongoing margin pressure from global market volatility, but aims for growth through product innovation and customer diversification.