Hyundai Motor Company (005380) Q1 2025 earnings summary

Executive summary

• Q1 2025 global wholesales reached 1,001,120 units, down 0.6% year-over-year, while global retail sales rose 1.0% to 956,354 units.

• Q1 2025 revenue rose 9.2% year-over-year to KRW 44.4 trillion, with operating income up 2.1% to KRW 3.63 trillion and net income up 0.2% to KRW 3.8 trillion.

• Strong hybrid and EV sales in the U.S. and Europe offset declines in other regions; eco-friendly vehicle sales surged 38.4% year-over-year to 212,000 units.

• Global wholesale sales grew 1.8% year-over-year, with notable strength in India (+10.6%) and South America (+13.0%), while China and Europe saw declines.

Financial highlights

• Automotive division revenue grew 11.2% year-over-year, driven by favorable FX and high-value segment expansion.

• Finance division revenue increased 11.2% year-over-year, with operating profit up 34.3%.

• Gross margin at 20.2%, down 0.5 percentage points year-over-year but up 0.7 sequentially; EBITDA increased 1.8% year-over-year to KRW 4.92 trillion.

• Cost of goods sold ratio rose to 79.8%, up 0.5 percentage points year-over-year; SG&A expenses increased 9.8% to KRW 5.3 trillion.

• Finance division's net income increased 8.4% year-over-year, with Hyundai Capital America showing a 63.5% net income rise.

Outlook and guidance

• Annual guidance maintained: sales growth of 3%-4% and operating profit margin of 7%-8%.

• High market volatility expected in Q2 2025; focus on cost efficiency and risk management in finance operations.

• Management highlighted ongoing market uncertainties, including economic conditions, currency fluctuations, and competitive dynamics.