Kia (000270) Q1 2025 earnings summary

Executive summary

• Q1 2025 global retail sales rose 1.8% YoY to 753,000 units, with strong growth in the U.S. (+10.7%) and India (+15.6%), but declines in Korea (-2.3%) and W. Europe (-3.3%).

• Revenue for Q1 2025 reached W28,018 billion (+6.9% YoY), but operating profit fell 12.2% to W3,009 billion due to higher costs and incentives.

• Net income attributable to owners was W2,393 billion, down from W2,808 billion in Q1 2024.

• Electrified vehicle (XEV) sales mix increased in all major markets, with BEV share in Korea doubling to 8.8% and W. Europe BEV mix reaching 20%.

• Total assets increased to W96,286 billion as of March 31, 2025.

Financial highlights

• Sales revenue: W28,018B (+6.9% YoY); operating profit: W3,009B (-12.2% YoY); net profit: W2,393B (-14.8% YoY).

• Gross margin declined to 21.7% from 23.8% a year ago.

• Cost of sales ratio increased to 78.3% (+2.1%p YoY); SG&A ratio rose to 11.0% (+0.3%p YoY).

• Basic EPS for Q1 2025 was W6,079, compared to W7,125 in Q1 2024.

• Non-operating income dropped to W235B from W359B YoY.

Outlook and guidance

• Plans to expand BEV and HEV lineups in all major markets, targeting higher XEV mix and market share.

• India aims for +23% YoY retail volume growth with new model launches and dealership expansion.

• W. Europe targets 22% BEV mix and 49% XEV mix by launching new BEV models.

• Management continues to monitor market and financial risks, including FX and interest rate volatility.

• No single external customer represented 10% or more of sales in Q1 2025.