Hyundai Motor Company (005380) Q4 2025 earnings summary

Executive summary

• Achieved record-high Q4 revenue of KRW 47T, driven by strong hybrid, SUV, and eco-friendly vehicle sales, with US wholesale surpassing 1 million units for the first time.

• Global wholesale sales in Q4 were 1.03 million units, down 3.1% YoY, while retail sales were 1.07 million units, down 0.2% YoY.

• Global HEV sales ratio reached 16.3% in Q4, with the US market at 22.6%.

• Eco-friendly vehicle sales rose significantly, with hybrids and EVs showing strong momentum across key markets.

Financial highlights

• Q4 2025 consolidated revenue increased 0.5% YoY to KRW 46.8T; operating income fell 39.9% YoY to KRW 1.7T; net income dropped 52.1% YoY to KRW 1.2T.

• Automotive division revenue rose 2.4% YoY, but OP dropped 49.7% YoY; finance division revenue up 9.2% YoY, OP down 2.7%.

• Gross margin for Q4 2025 was 16.7%, down 2.8 percentage points YoY; EBITDA for Q4 2025 was KRW 3.1T, down 14.7% YoY.

• Cost of goods sold ratio increased 2.8 percentage points YoY to 83.3%.

Outlook and guidance

• 2026 sales target set at 4.158 million units, up 20,000 YoY; revenue expected to grow 1%-2% YoY, with OPM targeted at 6.3%-7.3%.

• Total investment for 2026 planned at KRW 17.8T, up 23.2% YoY, with R&D and CapEx increases focused on electrification and US localization.

• Free cash flow for 2026 expected between negative KRW 1T and positive KRW 0.5T.

• Shareholder return policy to continue, targeting at least 35% TSR.

• Management highlighted ongoing macroeconomic uncertainties, tariff impacts, and regulatory changes as factors influencing future performance.