HL Mando (A204320) Q2 2025 earnings summary

Executive summary

• Achieved sales of KRW 2,400.9 bn in 2Q25, up 11.8% year-over-year, with strong performance across all regions and a key contribution from the IDB2 ramp-up in Mexico.

• Operating profit reached KRW 104.1 bn (4.3% margin), while net profit was KRW 9.9 bn (0.4% margin), reflecting improved profitability from a higher E-product mix and localized production.

• E-product sales accounted for 64.5% of total sales, with North America E-product sales at 70% due to the IDB2 ramp-up.

• Secured KRW 4.4 tn in new business wins, representing 50% of the FY25 target, with significant orders from HMG and leading OEMs in North America, India, and China.

Financial highlights

• Sales increased to KRW 2,400.9 bn, up 11.8% year-over-year and 5.7% sequentially from 1Q25.

• Operating profit rose to KRW 104.1 bn, up 16.2% year-over-year and 31.5% sequentially, with an operating margin of 4.3%.

• Net income declined to KRW 9.9 bn, down from KRW 11.9 bn year-over-year and KRW 34.6 bn sequentially, impacted by FX losses and higher corporate tax expense.

• Profit before tax was KRW 34.1 bn, down from KRW 50.1 bn year-over-year and KRW 61.6 bn sequentially.

Outlook and guidance

• Future growth in North America expected from resilient customer base, E-product expansion, and increased local production capacity.

• Ongoing technical shifts (EV, SDV, AV) and 'by-wire' technology adoption anticipated to drive further electrified product growth.