Hyundai Wia (011210) Q4 2025 earnings summary

Executive summary

• Achieved consolidated revenue of KRW 8,481.6 billion in 2025, up 3.7% year-over-year, with operating income of KRW 204.4 billion and net income of KRW 116.9 billion, reflecting strong automotive and defense segments but a decline in operating margin due to cost increases and discontinued machine tool operations.

• Completed the spin-off and sale of the machine tool business, classifying it as discontinued operations, which impacted both revenue and net income figures.

• Maintained a robust cash position with cash and cash equivalents at KRW 1,116.5 billion at year-end, and improved the net debt-to-equity ratio to 0.45.

Financial highlights

• Revenue: KRW 8,481.6 billion (+3.7% YoY); Operating income: KRW 204.4 billion (-6.6% YoY); Net income: KRW 116.9 billion (-9.7% YoY, including discontinued operations).

• Gross margin stable at 6.4%; Operating margin at 2.4% (down from 2.7% YoY).

• Cash flow from operations: KRW 404.1 billion; Capex and R&D investments continued.

• Dividend per share: KRW 1,200; payout ratio 32.2%.

Outlook and guidance

• Expects continued growth in automotive and defense segments, with focus on electrification, smart factory, and mobility solutions.

• Targets mid-term dividend payout ratio of 25–35% and ongoing investments in R&D and production capacity.

• Cautious on global economic and geopolitical risks, especially in Russia.