Hyundai Motor Company (005380) Q3 2026 earnings summary

Executive summary

• Q3 operating income rose 5.5% YoY to KRW 2,677 billion and operating margin improved 0.5 percentage points to 5.9%; revenue fell 3.4% to KRW 45,110 billion and net income declined 24.2% to KRW 1,932 billion.

• Global wholesale sales fell 11.3% YoY to 921,000 units amid weaker demand and production disruptions.

Financial highlights

• Revenue declined 3.4% YoY to KRW 45,110 billion; lower wholesale volume had a negative KRW 3.44 trillion effect, partly offset by favorable FX of KRW 0.66 trillion.

• Operating income rose 5.5% to KRW 2,677 billion; automotive operating income increased 24.8% to KRW 2,135 billion, offsetting declines in finance and other operations.

• Net income fell 24.2% to KRW 1,932 billion, while income before tax declined 12.6% to KRW 2,907 billion.

• SG&A declined 19.2% to KRW 4,645 billion, mainly due to lower warranty provisions; gross profit fell 11.6% to KRW 7,322 billion.

Outlook and guidance

• FY2026 wholesale guidance was reduced from 4.1 million to 4.0 million units; revenue growth guidance remains 1%-2% and operating margin guidance was revised to 5.5%-6.5%.

• FY2026 free cash flow guidance remains KRW -1.5 trillion to KRW +0.5 trillion; Q4 production normalization and delayed model launches are expected to support supply recovery.

• Hybrids, new model launches, lower incentives and cost initiatives are intended to support profitability amid raw material costs, tariffs and geopolitical risks.

• Europe and Korea sales recovery is expected in Q4, supported by IONIQ 3 ramp-up, normalized production and new model launches.