Hyundai Motor Company (005380) Q4 2025 earnings summary

Executive summary

• Achieved record-high Q4 revenue of KRW 47T, driven by strong US hybrid and SUV sales, with the first-ever 1 million wholesale units in the US market for FY2025, despite tariff concerns and demand slowdown.

• Global wholesale sales in Q4 were 1.03 million units, down 3.1% YoY; retail sales down 0.2% YoY.

• Eco-friendly vehicle sales rose 12.1% YoY, with hybrids and EVs driving growth in key markets; global HEV sales ratio reached 16.3% in Q4, with the US at 22.6%.

• Consolidated revenue increased 0.5% YoY to KRW 46.8T; operating income fell 39.9% YoY to KRW 1.7T; net income dropped 52.1% YoY to KRW 1.2T.

Financial highlights

• Q4 2025 revenue was KRW 46.8T, up 0.5% YoY; annual revenue grew 6.3% to KRW 186.3T.

• Q4 2025 operating income fell 39.9% YoY to KRW 1.7T; annual operating income declined 19.5% to KRW 11.5T.

• Q4 2025 net income dropped 52.1% YoY to KRW 1.2T; annual net income decreased 21.7% to KRW 10.4T.

• Automotive Division revenue up 2.4% YoY; OP down 49.7% YoY due to tariffs and incentives.

• Gross margin for Q4 2025 was 16.7%, down 2.8pp YoY; EBITDA for Q4 2025 was KRW 3.1T, down 14.7% YoY.

Outlook and guidance

• 2026 sales target set at 4.158 million units, up 20,000 YoY.

• 2026 revenue expected to grow 1%-2% YoY, driven by North America and hybrid expansion.

• 2026 OPM targeted at 6.3%-7.3%; no temporary cost increases expected.

• Total 2026 investment planned at KRW 17.8T (+23.2% YoY), with R&D at KRW 7.4T and CapEx at KRW 9.0T.

• Management highlighted ongoing macroeconomic uncertainties, tariff impacts, and regulatory changes as factors influencing future performance.