Hyundai Motor Company (005380) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 9.2% year-over-year to KRW 44.4 trillion, with net income up 0.2% to KRW 3.38 trillion and operating income up 2.1% to KRW 3.63 trillion.

• Global wholesales reached 1,001,120 units, down 0.6% year-over-year, while global retail sales rose 1.0% to 956,354 units.

• Eco-friendly vehicle sales surged 38.4% year-over-year to 212,000 units, with strong hybrid and EV sales in the U.S. and Europe.

• Discontinued operations resulted in a loss of KRW 319.1 billion, mainly from the sale of Hyundai Motor Manufacturing Rus LLC.

• Comprehensive income declined year-over-year, mainly due to lower other comprehensive income.

Financial highlights

• Automotive division revenue grew 11.2% year-over-year, while finance division revenue increased 11.2% and operating profit rose 34.3%.

• Gross margin at 20.2%, down 0.5 percentage points year-over-year but up 0.7 sequentially.

• EBITDA increased 1.8% year-over-year to KRW 4.92 trillion.

• Cost of goods sold ratio rose to 79.8%, up 0.5 percentage points year-over-year; SG&A expenses increased 9.8% to KRW 5.3 trillion.

• Basic EPS for common stock was KRW 12,076, down from KRW 12,287 year-over-year.

Outlook and guidance

• Annual guidance maintained: sales growth of 3%-4% and operating profit margin of 7%-8%.

• High market volatility expected in Q2 2025; focus on cost efficiency and risk management in finance operations.

• Pillar Two legislations not expected to affect Q1 2025 income tax, but may impact by year-end.

• Management highlighted ongoing market uncertainties, including economic conditions, currency fluctuations, and competitive dynamics.

• No single external customer represented 10% or more of sales for Q1 2025.