HL Mando (A204320) Q2 2025 earnings summary

Executive summary

• Achieved sales of KRW 2,400.9 bn in 2Q25, up 11.8% year-over-year, with strong performance across all regions and a key contribution from the IDB2 ramp-up in Mexico.

• Achieved consolidated sales of KRW 4.67 trillion for H1 2025, with continued growth in overseas markets, especially China and the US.

• Operating profit reached KRW 104.1 bn (4.3% margin) in 2Q25, while net profit was KRW 9.9 bn (0.4% margin), reflecting improved profitability from a higher E-product mix and localized production.

• E-product sales accounted for 64.5% of total sales, with North America E-product sales at 70% due to the IDB2 ramp-up.

• Maintains a robust R&D pipeline, focusing on next-generation mobility solutions, autonomous driving, and electrification.

Financial highlights

• H1 2025 consolidated revenue: KRW 4,671.9 billion, down from KRW 8,848.2 billion in FY2024 (full year).

• Sales increased to KRW 2,400.9 bn in 2Q25, up 11.8% year-over-year and 5.7% sequentially from 1Q25.

• Operating profit for H1 2025: KRW 183.3 billion; net profit: KRW 44.5 billion.

• Net income declined to KRW 9.9 bn in 2Q25, down from KRW 11.9 bn year-over-year and KRW 34.6 bn sequentially, impacted by FX losses and higher corporate tax expense.

• Cash and cash equivalents at period end: KRW 667.4 billion.

Outlook and guidance

• Future growth in North America expected from resilient customer base, E-product expansion, and increased local production capacity.

• Expects continued growth in global automotive demand, especially in China and India, despite macroeconomic uncertainties.

• Ongoing technical shifts (EV, SDV, AV) and 'by-wire' technology adoption anticipated to drive further electrified product growth.

• Focus on expanding ADAS, electrification, and global OEM partnerships.

• Dividend policy targets payout of ~20% of controlling interest net income, with flexibility for additional shareholder returns.