Hyundai Rotem (064350) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was ₩1,842.3 billion, down from ₩3,587.4 billion in H1 2023, while operating profit rose to ₩157.4 billion from ₩99.1 billion year-over-year.

• Net income for H1 2024 was ₩157.6 billion, slightly down from ₩161.0 billion in H1 2023.

• Order backlog grew to ₩18,991.5 billion as of June 2024, up from ₩16,604.3 billion in H1 2023.

• EBIT surged 154% year-over-year to ₩185.6 billion in H1 2024.

Financial highlights

• Gross margin for H1 2024 was 16.4%, up from 11.6% in H1 2023.

• EPS for H1 2024 was ₩1,444, compared to ₩1,475 in H1 2023.

• Cash and cash equivalents at June 2024 were ₩492.3 billion, up from ₩396.1 billion at December 2023.

• Debt-to-equity ratio improved to 177.5% in H1 2024 from 218.3% at year-end 2023.

• New orders dropped 43% year-over-year to ₩2,749.1 billion in H1 2024.

Outlook and guidance

• The company expects continued growth in defense and rail solutions, supported by robust order backlog, but acknowledges uncertainties that may impact actual results.

• Ongoing investments in hydrogen rail vehicles and smart logistics are expected to drive future growth.