Kia (000270) Q1 2026 earnings summary

Executive summary

• Q1 2026 global retail sales grew 3.7% year-over-year to 780,000 units, achieving a record high despite a 7.2% decline in global industry demand, driven by strong HEV/EV sales and new model launches.

• Q1 2026 sales revenue rose 5.3% year-over-year to KRW 29.502 trillion, with consolidated sales units up 0.4% to 739,880 units, supported by higher ASP and favorable FX rates.

• Operating profit declined 26.7% year-over-year to KRW 2.205 trillion, with margin dropping to 7.5% due to U.S. tariffs, increased incentives, and FX-related warranty provisions.

• Net profit dropped 23.5% year-over-year to KRW 1.8 trillion.

• Global market share reached 4.6%, with balanced growth across regions, overcoming disruptions in the Middle East and Africa.

Financial highlights

• Gross profit for Q1 2026 was KRW 5.804 trillion, with gross margin at 19.7%.

• Cost of sales ratio rose to 80.3% (77.8% excluding tariff impact); SG&A ratio increased to 12.2%.

• Non-operating income increased by KRW 195 billion year-over-year to KRW 430 billion, aided by FX gains.

• Net cash position increased by KRW 1.751 trillion to KRW 21.389 trillion.

• Cash and cash equivalents at period end were KRW 16.115 trillion, up from KRW 13.998 trillion at the previous year-end.

Outlook and guidance

• Annual operating profit guidance maintained at KRW 10.2 trillion, with raw material price increases expected to impact OP by about 5% and war-related disruptions by 2-3%.

• Q2 2026 expected to see continued EV and hybrid launches, with European sales recovering and emerging markets like India offsetting MEA losses.

• No proactive price increases planned in India; focus remains on maintaining competitiveness.

• Domestic EV sales momentum is expected to continue, with new model launches and targeted promotions planned for Q2 2026.

• Overseas, the company anticipates demand headwinds from high interest rates and oil prices, but will focus on flexible supply and new EV/HEV launches.