Hyundai Motor Company (005380) investor relations material

Executive summary

• Achieved record-high Q1 revenue of KRW 45.94 trillion, up 3.4% year-over-year, despite a 7.2% global demand decline and geopolitical risks.

• Global market share rose by 0.3 percentage point; U.S. market share increased by 0.4 percentage point, maintaining above 6% for four consecutive quarters.

• Hybrid vehicle sales reached 174,000 units globally, with hybrids accounting for 17.8% of global sales and 24.8% in the U.S., marking the highest-ever Q1 HEV sales ratio.

• Operating profit declined 30.8% year-over-year to KRW 2.51 trillion due to tariffs, increased incentives, and one-off external factors.

• Net income decreased by 23.6% year-over-year to KRW 2.6 trillion, but more than doubled sequentially.

Financial highlights

• Consolidated revenue: KRW 45.94 trillion (+3.4% YoY); operating income: KRW 2.51 trillion (-30.8% YoY); operating margin: 5.5%.

• Net income: KRW 2.6 trillion (-23.6% YoY); net profit attributable to controlling interests: KRW 2.34 trillion (-26% YoY).

• Gross margin declined to 17.5% from 20.2% YoY.

• SG&A expenses rose 2.9% YoY to KRW 5.5 trillion, mainly from increased sales warranty provisions.

• Finance business revenue grew 21.5% YoY; operating profit up 1.4% YoY.

Outlook and guidance

• Annual operating margin guidance maintained at 6.3%-7.3%, supported by new model launches and contingency measures.

• Full-year guidance targets global sales of 5.55 million units, focusing on EV/HEV expansion and production capacity increases.

• Continued focus on margin protection through zero-based budgeting and company-wide cost controls.

• Expectation of ongoing volatility from macroeconomic headwinds, tariffs, and Middle East conflict.

• Strategic investments in software-defined vehicles, battery technology, and global partnerships.