Hyundai Steel Company (004020) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was KRW 5,564bn, down KRW 384bn YoY and KRW 49bn QoQ, with an operating loss of KRW 19bn and a net loss of KRW 54bn.

• Operating profit improved from KRW -46bn in 4Q 2024 but declined from KRW 56bn in 1Q 2024.

• Net profit was negative at KRW -54bn, a further decline from KRW -9bn in the previous quarter and KRW 32bn in 1Q 2024.

• Gross profit margin declined year-over-year, and EPS was negative at KRW -419 for the quarter.

• Cash flow from operations improved significantly to KRW 537.1bn, up from KRW 40.1bn in the prior year.

Financial highlights

• Consolidated gross profit rose to KRW 292bn in 1Q 2025, up KRW 22bn QoQ but down KRW 73bn YoY.

• Total assets at March 31, 2025, were KRW 34,745.2bn, with liabilities of KRW 15,439.6bn and equity of KRW 19,305.6bn.

• Cash and cash equivalents increased to KRW 1,509.1bn from KRW 1,295.6bn at year-end 2024.

• Capital expenditures for the quarter were KRW 653.2bn.

• Non-consolidated revenue was KRW 4,290bn, down KRW 194bn QoQ and KRW 530bn YoY.

Outlook and guidance

• Steel prices are supported by reduced low-priced imports and production cuts, but oversupply and weak demand are pressuring raw material prices.

• HRC prices remain stable, while coal and scrap prices are declining due to increased supply and lower demand.

• The company expects gradual recovery in construction and automotive steel demand as interest rates decline and global economic conditions stabilize.

• Ongoing investments in low-carbon steel production and new electric arc furnace capacity in the US are expected to support future growth and carbon neutrality goals.