Hyundai Motor Company (005380) Q2 2025 earnings summary

Executive summary

• Q2 2025 global wholesale sales reached 1.07 million units, the highest since 2020, up 0.8% year-over-year, driven by strong SUV and hybrid demand and favorable FX rates.

• Consolidated revenue rose 7.3% year-over-year to KRW 48.3 trillion, but operating income fell 15.8% to KRW 3.6 trillion due to tariff and incentive impacts.

• Net income decreased by 22.1% year-over-year to KRW 3.3 trillion, with net margin at 6.7%.

• Strong growth in hybrid and electric vehicle sales, with hybrids accounting for 15.8% of total sales and EV sales up 36.4% year-over-year.

• Successful launch of Palisade HEV with 15,000 units sold in Q2, supporting eco-friendly vehicle growth.

Financial highlights

• Automotive business revenue increased 5.1% year-over-year, driven by favorable forex and high-value segment expansion.

• Finance business revenue grew 16.4% year-over-year, with operating profit up 16.4%.

• Cost of goods sold ratio rose to 81.1%, up 2.7 percentage points year-over-year.

• SG&A expenses increased 0.9% to KRW 5.5 trillion, mainly due to higher marketing and R&D costs.

• EBITDA was 4,931 billion KRW, down 11.2% year-over-year but stable sequentially.

Outlook and guidance

• 2025 annual guidance maintained for now; updated guidance to be communicated after more clarity on tariff policy post-August 1.

• Management expects continued sales growth in H2, especially in eco-friendly vehicles, despite EV policy uncertainties.

• Plans to expand EV sales with new model launches and production optimization in the second half.

• Market uncertainties expected to grow, especially due to tariff policy.