Hyundai Wia (011210) Q1 2026 earnings summary

Executive summary

• Q1 2026 sales rose 5.7% year-over-year and 4.3% sequentially to KRW 2,179.3 billion, driven by growth in automotive parts, mobility solutions, and defense exports.

• Operating profit increased 6.2% year-over-year and 8.1% sequentially to KRW 51.6 billion (2.4% margin); net income was KRW 35.4 billion.

• Automotive parts sales rose 4.9% year-over-year, while mobility solutions and defense segments grew 15.4%.

• Net income dropped 65.1% year-over-year but more than doubled sequentially, impacted by FX losses.

• The company completed the sale of its machine tool business in July 2025 for KRW 340 billion.

Financial highlights

• Gross profit for Q1 2026 was KRW 137.4 billion, with a gross margin of 6.3%.

• Operating margin held steady at 2.4% in Q1 2026.

• Net margin was 1.6% in Q1 2026, down from 4.9% a year ago.

• Cash and cash equivalents at quarter-end were KRW 956.6 billion, up by KRW 19.39 billion from year-end 2025.

• Total assets stood at KRW 7,219.0 billion, with equity of KRW 4,147.1 billion.

Outlook and guidance

• Focus on growth in module, 4WD, TMS, defense, and eco-friendly vehicle components.

• Plans to expand global production and R&D investments, emphasizing electrification and smart factory solutions.

• Initial ramp-up costs for TMS and lower utilization in Russia/Mexico expected to impact margins.

• Dividend policy targets a payout ratio of 25–35% from 2026, with a 2025 dividend of KRW 1,200 per share (32.2% payout).