Hyundai Motor Company (005380) Q2 2026 earnings summary

Executive summary

• Achieved record-high Q2 revenue of KRW 49.2 trillion, up 1.9% YoY, despite global demand slowdown, production disruptions, and macroeconomic uncertainties.

• U.S. market share increased by 0.2pp YoY, maintaining above 6% for the fifth consecutive quarter.

• Global wholesale sales declined 6.9% YoY to 992,000 units due to supply chain issues and weaker demand in key regions.

• Hybrid vehicle sales reached a record 188,000 units, with hybrids accounting for 18.9% of global sales and 26.2% in the U.S.

• Operating profit fell 20.8% YoY to KRW 2.8 trillion, with margin at 5.8%, impacted by higher incentives and unfavorable mix.

Financial highlights

• Consolidated revenue: KRW 49,215B (+1.9% YoY, +7.1% QoQ).

• Operating income: KRW 2,851B (-20.8% YoY, +13.4% QoQ).

• Net income: KRW 2,888B (-11.1% YoY, +11.7% QoQ).

• Automotive division revenue fell 2.1% YoY; finance division revenue rose 15.7% YoY; other segments up 16.8% YoY.

• Gross margin declined to 17.8% from 18.9% YoY; operating margin at 5.8% vs. 7.5% YoY.

Outlook and guidance

• Annual operating profit margin guidance maintained at 6.3%-7.3%.

• Production losses from H1 expected to be recovered in H2 with new model launches and normalized supply.

• New models (Grandeur Hybrid, Avante Hybrid, Tucson Hybrid, Genesis Hybrid, IONIQ 3) to drive H2 sales and profitability.

• Anticipates continued strong HEV and EV demand, especially in the U.S. and Korea, supported by high fuel prices and government incentives.

• Tariff impact expected to decline YoY in H2.