Kia (000270) Q3 2025 earnings summary

Executive summary

• Q3 2025 global retail sales grew 5.5% year-over-year, led by strong HEV and EV demand, especially in the U.S. and domestic markets, maintaining a 3.6%–4.0% global market share.

• Domestic sales rose 10.3% year-over-year, U.S. sales increased 11.1%, while Western Europe declined due to model discontinuations and production adjustments.

• Electrified vehicle sales surged, with HEVs and EVs making up 15.2% and 9% of the sales mix, respectively, and U.S. HEV sales up 87.2% year-over-year.

• Q3 2025 revenue reached KRW 28.686 trillion, up 8.2% year-over-year, but operating profit fell 49.2% to KRW 1.462 trillion due to U.S. tariffs and higher costs.

• Interim consolidated financial statements for the nine months ended September 30, 2025, were reviewed with no material misstatements found under KIFRS 1034.

Financial highlights

• Q3 2025 sales revenue: KRW 28.686 trillion (+8.2% YoY); operating profit: KRW 1.462 trillion (-49.2% YoY); net profit: KRW 1.422 trillion (-37.3% YoY).

• Gross margin declined to 18.9% from 23.2% a year ago; cost of sales ratio increased to 81.1% (+4.3%p YoY); SG&A ratio rose to 13.8% (+1.5%p YoY).

• Net non-operating income improved to KRW 425 billion (+KRW 74 billion YoY).

• Total assets at Q3-end were KRW 97.984 trillion, up KRW 5.228 trillion from 2024 year-end.

• Net cash position increased by KRW 1.195 trillion to KRW 19.936 trillion.

Outlook and guidance

• Q4 will see the launch of EV4, EV5, and PV5, aiming to solidify EV leadership amid growing demand.

• U.S. and European HEV and EV demand expected to remain robust, with new models supporting growth.

• India expects demand boost from GST rate cuts and new model launches.

• Incentives in the U.S. are expected to remain stable in Q4, while European incentives will normalize as new EVs launch.

• No single external customer accounted for 10% or more of sales in the period.