Hyundai Rotem (064350) Q2 2025 earnings summary

Executive summary

• Sales reached 25,938 hundred million KRW in H1 2025, up 41% year-over-year from H1 2024, with operating profit surging 193% to 4,604 hundred million KRW and net income of 3,467 hundred million KRW.

• Defense solutions accounted for 55% of sales, rail solutions 36%, and eco plant 9%.

• Order backlog increased 14% to 216,368 hundred million KRW as of H1 2025, supporting future growth.

• New orders doubled year-over-year, totaling 55,107 hundred million KRW in H1 2025.

• Major contract wins in the US, Egypt, Uzbekistan, and Morocco for rail and defense projects.

Financial highlights

• Revenue for H1 2025 was 25,938 hundred million KRW, up from 18,423 in H1 2024.

• Gross profit for H1 2025 reached 6,447 hundred million KRW, more than double H1 2024.

• Net income for H1 2025 was 3,467 hundred million KRW, up from 1,565 in H1 2024.

• EBIT margin improved to 17.5% in H1 2025 from 10.1% in H1 2024.

• Basic EPS for H1 2025 was KRW 3,198, compared to KRW 3,728 in H1 2024.

Outlook and guidance

• The company expects continued growth in defense and rail segments, supported by a strong order backlog and ongoing government and export projects.

• Expansion into hydrogen mobility and smart logistics is anticipated to drive future revenue streams.

• Forward-looking statements anticipate continued growth but caution that actual results may differ due to uncertainties.