HL Mando (A204320) Q1 2025 earnings summary

Executive summary

• Sales reached KRW 2,271.0bn in Q1 2025, up 7.8% year-over-year, with operating profit at KRW 79.2bn and net profit at KRW 34.6bn (NPM 1.5%).

• Net income attributable to owners was KRW 27.9bn, down from KRW 129.9bn in Q1 2024.

• Performance was supported by a diversified regional customer base and robust R&D investment in advanced chassis, ADAS, and electrification technologies.

• New business wins totaled KRW 2.5tn in Q1 2025, representing 18% of the annual target, with significant orders from Chinese and Indian OEMs.

• Major customers (Hyundai/Kia, GM) represented about 71% of total sales.

Financial highlights

• Operating profit increased by KRW 3.6bn year-over-year but declined sequentially by KRW 31.8bn.

• Net income dropped by KRW 111.1bn year-over-year due to a one-time KRW 148bn gain on financial assets in Q1 2024.

• Basic EPS was KRW 595 (Q1 2024: KRW 2,767).

• Gross margin and operating margin remained stable, with minor fluctuations compared to prior periods.

• Total assets: KRW 7,235.3bn; total equity: KRW 2,571.2bn.

Segment performance

• Americas sales grew 23.6% year-over-year, India posted a 15% increase, while Korea and China saw modest changes.

• Europe experienced a slight decline in sales year-over-year but grew sequentially.

• Korea accounted for 43.8% of Q1 2025 sales, China 22.3%, US 19.5%, India 11.4%, and other regions 20.3%.

• Growth in India and Americas offset declines in Korea and China sequentially.

• Suspension supply contract with Volkswagen AG ongoing through 2033.