Hyundai Autoever ( 307950) Q3 2025 earnings summary

Executive summary

• Achieved consolidated revenue of KRW 1,054 billion in 3Q25, up 16.5% year-over-year and 1.2% sequentially.

• Operating profit reached KRW 71 billion, a 34.8% increase year-over-year, though down 13% sequentially.

• Net profit was KRW 53 billion, up 18.1% year-over-year but down 11.6% from the previous quarter.

• Revenue for the first nine months of 2025 was KRW 2,929.3 billion, down from KRW 3,713.6 billion in the same period of 2024.

• Major customers, including Hyundai Motor Group affiliates, accounted for 95% of total sales.

Financial highlights

• Gross profit for 3Q25 was KRW 116 billion, up 20.5% year-over-year, with a gross margin of 11.0%.

• Gross profit margin for the period was 10.5%, with gross profit at KRW 308.7 billion.

• Operating margin improved to 6.7% in 3Q25 from 5.8% a year ago.

• SG&A-to-sales ratio declined due to optimized overhead and improved efficiency.

• Overseas subsidiaries posted strong revenue growth: N. America +34.1%, Europe +96.2%, India +54.7%, China +59.6% year-over-year.

Outlook and guidance

• Management expects continued growth in SI and ITO segments, supported by new contracts and expanded operations.

• Ongoing large-scale contracts, including AWS PPA billing, next-gen ERP, and hCloud services, provide revenue visibility for the coming years.

• Favorable foreign exchange rates and increased CCS/data usage expected to support overseas revenue.

• The company targets a dividend payout ratio of 25–35% through 2027.