Hyundai Mobis (A012330) Q3 2024 earnings summary

Executive summary

• 3Q24 revenue declined 1.6% year-over-year to KRW 14.0 trillion, mainly due to electrification sales drop and battery cell price decreases.

• Operating profit rose 31.6% year-over-year to KRW 909 billion, driven by strong A/S parts demand and profitability improvements.

• A/S business sales increased 10.4% year-over-year to KRW 3.0 trillion, supported by global demand and regional price adjustments.

• Non-captive orders reached USD 2.38 billion (26% of 2024 target), with delays in major EV projects impacting order performance.

Financial highlights

• Gross profit for 3Q24 was KRW 2,303 billion, up 30.5% year-over-year.

• Net profit for 3Q24 was KRW 921 billion, down 7.7% year-over-year.

• Operating margin improved to 6.5% in 3Q24 from 4.9% in 3Q23.

• Electrification sales dropped 42.0% year-over-year to KRW 1,579 billion, mainly due to battery cell price and quantity decreases, and accounting changes.

• Core parts sales increased 11.7% year-over-year to KRW 3,084 billion, reflecting a favorable product mix.

Outlook and guidance

• Major EV project delays expected to push significant order growth into 2025.

• CEO Investor Day scheduled for November 19, 2024, to announce long-term value enhancement plans and new shareholder return policy.