Hyundai Motor Company (005380) Q4 2024 earnings summary

Executive summary

• 2024 consolidated revenue rose 7.7% year-over-year to KRW 175.2 trillion, with net income up 7.8% to KRW 13.2 trillion.

• Operating income declined 5.9% to KRW 14.2 trillion, while comprehensive income reached KRW 18.3 trillion.

• Q4 2024 revenue was KRW 46.6 trillion, up 11.9% year-over-year; net income for Q4 was KRW 2.5 trillion, up 12.3%.

• SUV and eco-friendly vehicle sales mix increased, with hybrids surging 41.3% year-over-year in Q4 and accounting for 10.9% of 2024 wholesale.

• Audit opinion was unqualified, and internal controls over financial reporting were effective.

Financial highlights

• Gross profit increased to KRW 35.7 trillion; EBITDA for 2024 was KRW 18.8 trillion, down from KRW 20.3 trillion in 2023.

• Q4 operating income fell 17.2% to KRW 2.8 trillion; annual operating margin declined to 8.1% from 9.3% year-over-year.

• Finance division revenue jumped 44.6% year-over-year in Q4; annual finance segment revenue surged 27% to KRW 28.4 trillion, with operating profit up 29.6%.

• Earnings per share for common stock were KRW 47,615, up from KRW 45,703 in 2023.

• Q4 COGS ratio increased to 80.5%; annual COGS ratio was 79.6%.

Outlook and guidance

• 2025 sales target set at 4.17 million units, up 32,000 units from 2024.

• Revenue expected to grow 3%-4% in 2025, with operating profit margin targeted at 7%-8%.

• CapEx planned at KRW 8.6 trillion; R&D investment at KRW 6.7 trillion (+37.2% year-over-year).

• Free cash flow projected between KRW 0.5 trillion and KRW 2 trillion.

• Shareholder return policy to deliver 35%+ total return, with minimum dividend of KRW 10,000 per common share and KRW 4 trillion in buybacks from 2025-2027.