Hyundai Motor Company (005380) Q2 2026 earnings summary

Executive summary

• Achieved record-high Q2 2026 revenue of KRW 49.2 trillion, up 1.9% YoY, despite global demand slowdown and production disruptions.

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

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

• The company operates in three main segments: vehicle manufacturing, financial services, and other businesses such as railcar production, with the vehicle segment accounting for 78% of 2025 sales.

• Recent strategic initiatives include expansion into hydrogen and vehicle rental businesses, and a focus on electrification, digital transformation, and global production capacity increases.

Financial highlights

• Consolidated revenue: KRW 49.2 trillion in Q2 2026 (+1.9% YoY); H1 2026 revenue: KRW 95.2 trillion, up from KRW 92.7 trillion in H1 2025.

• Operating income: KRW 2.8 trillion in Q2 2026 (-20.8% YoY); H1 2026 operating income: KRW 5.37 trillion, down from KRW 7.24 trillion in H1 2025.

• Net income: KRW 2.9 trillion in Q2 2026 (-11.1% YoY); H1 2026 net income attributable to controlling interests: KRW 4.86 trillion.

• Automotive division revenue fell 2.1% YoY; finance division revenue rose 15.7% YoY in Q2 2026.

• Total assets as of June 30, 2026, were KRW 394.5 trillion, with total equity of KRW 135.4 trillion.

Outlook and guidance

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

• Sales momentum expected to recover in Korea and Europe with major new model launches (IONIQ 3, Tucson, Grandeur Hybrid, Avante Hybrid, Genesis Hybrid) in H2 2026.

• Strategic priorities include increasing hybrid and EV production capacity, localizing operations in key markets, and leveraging group synergies for efficiency.

• The group is committed to a minimum 35% total shareholder return (TSR) policy from 2025, including dividends and share buybacks.

• Production losses from H1 expected to be recovered in H2 with normalized supply.