Kia (000270) Q4 2025 earnings summary

Executive summary

• Q4 2025 global retail sales grew 1.6% year-over-year, led by HEV and SUV models in the U.S. and strong growth in India and emerging markets.

• Electrified vehicle sales rose 13.2% year-over-year, with HEVs driving growth in the U.S. and BEV/HEV mixes rising in Western Europe.

• Revenue increased 3.5% year-over-year to KRW 28.088 trillion, but operating profit fell 32.2% to KRW 1.843 trillion due to U.S. tariffs and higher costs.

• Net profit declined 15.5% year-over-year to KRW 1.471 trillion.

Financial highlights

• Q4 2025 revenue: KRW 28.088 trillion (+3.5% YOY); operating profit: KRW 1.843 trillion (-32.2% YOY); net profit: KRW 1.471 trillion (-15.5% YOY).

• Global ASP increased 4.7% YOY to KRW 39.1 million, driven by HEV/EV mix and FX effects.

• Cost of sales ratio rose to 81.7% (+2.9pp YOY); SG&A ratio up to 11.8% (+0.6pp YOY) from FX volatility and higher warranty provisions.

• Non-operating income improved by KRW 541 billion YOY, mainly from FX gains and absence of prior year impairments.

• Full-year 2025 sales revenue reached KRW 114.141 trillion (+6.2%), but operating profit fell 28.3% to KRW 9.078 trillion; net profit was KRW 7.554 trillion, down 22.7%.

Outlook and guidance

• 2026 wholesale sales target: 3.35 million units (+6.8% YOY); retail sales to grow 6.5% YOY.

• 2026 revenue target: KRW 122.3 trillion (+7.2% YOY); operating profit target: KRW 10.2 trillion (margin 8.3%).

• U.S. focus on SUV/HEV growth with new Telluride and Seltos models; Europe to drive EV sales with full EV lineup; India to target premium SUV segment.

• New BEV models (EV2, EV4, EV5, PV5) and India-specific EV planned for 2026.

• Continued cost reduction and ASP improvement planned to offset tariff and incentive pressures.