Kia (000270) Q2 2025 earnings summary

Executive summary

• Q2 2025 global retail sales rose 4.2% year-over-year, with strong performance in the U.S. and India, and a 3.7% global market share; H1 2025 revenue reached ₩57.4 trillion, up 6.7% year-over-year, driven by higher ASP from HEV/EV sales and product mix improvements.

• Electrified vehicle sales grew 14% year-over-year, with hybrids and EVs making up 23.4% of global sales; BEV and HEV models drove mix improvements in key regions.

• Revenue for Q2 2025 was KRW 29.35 trillion, up 6.5% year-over-year, but operating profit fell 24.1% to KRW 2.765 trillion due to U.S. tariffs and increased incentives; H1 2025 operating profit declined 18.3% to ₩5.77 trillion.

• Net income attributable to shareholders was ₩4.66 trillion, with basic EPS at ₩11,883.

• Interim consolidated financial statements reviewed with no material misstatements found, prepared in accordance with KIFRS 1034.

Financial highlights

• Q2 2025 sales revenue: W29,350B (+6.5% YoY); operating profit: W2,765B (-24.1% YoY); net profit: W2,268B (-23.3% YoY); H1 2025 gross profit: ₩11.96 trillion, gross margin: 20.8%.

• Operating margin for H1 2025 was 10.1%, down from 13.1% in H1 2024.

• Cash and cash equivalents at period end were ₩11.5 trillion, down from ₩13.6 trillion at the end of 2024.

• Total assets as of June 30, 2025: W93,662,226 million; total equity: W56,910,558 million.

• Debt ratio improved to 64.6% from 66.1% at year-end 2024.

Outlook and guidance

• H2 2025 expected to be more challenging due to full tariff impact, anticipated demand decline in Europe, and intensified competition.

• Plans to expand BEV and HEV offerings, targeting higher xEV mix in major markets, and focus on launching new models (EV3, EV4, EV5, Tasman pickup) and expanding dealership networks.

• Guidance on annual performance remains uncertain pending tariff policy resolution.

• Continued investment in production capacity, R&D, and electrification to support long-term growth.