HL Mando (A204320) Q3 2025 earnings summary

Executive summary

• Achieved sales of KRW 2,321.3 bn in 3Q25, up 6.9% year-over-year, with net profit rebounding to KRW 49.2 bn, reversing a net loss in 3Q24.

• Operating profit reached KRW 94.2 bn (4.1% OPM), with margin improvement from operational stabilization in Mexico and Poland.

• Revenue for the first nine months of 2025 was KRW 6,993.2 bn, down from KRW 8,848.2 bn year-over-year, with net income attributable to owners at KRW 76.1 bn, a decrease from KRW 129.9 bn in the prior year.

• Secured KRW 3.3 tn in new business wins, 75% of the FY25 target, including major EV platform orders in North America.

• Maintained a strong global presence, with diversified sales across Korea, China, the US, India, and other regions.

Financial highlights

• Sales increased by KRW 149.6 bn (+6.9%) year-over-year in 3Q25 but declined 3.3% sequentially from 2Q25.

• Operating profit rose by KRW 11.7 bn year-over-year in 3Q25; operating margin improved by 0.3 percentage points.

• Total assets at the end of Q3 2025 were KRW 6,861.5 bn, with liabilities of KRW 4,284.5 bn and equity of KRW 2,577.0 bn.

• Cash and cash equivalents at period end were KRW 590.8 bn, up from KRW 535.5 bn at the previous year-end.

• Gross margin for the period was 14.97%, with a net margin of 1.34%.

Outlook and guidance

• Ongoing efforts to minimize tariff impact through USMCA compliance and localization.

• Continued focus on operational efficiency, global R&D/production optimization, and electrification.

• Investments in new technologies such as EMB, SbW, and advanced ADAS/SDV solutions are expected to drive future growth.

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