Hyundai Motor posts Q3 operating profit of 2.6772 trillion won, weathering the storm; sales and investment targets scaled back

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On the 29th, Hyundai Motor held an earnings conference call and officially announced that for the third quarter of 2026, on a consolidated IFRS basis, it recorded revenue of 45.1102 trillion won, operating profit of 2.6772 trillion won, and net income of 1.9317 trillion won.

Due to the combined effects of shrinking global industrial demand and production disruptions caused by domestic factory strikes, revenue decreased by 3.4% year-on-year. However, driven by mix improvement centered on high-value-added vehicle models, rising exchange rates, and strong sales of eco-friendly vehicles led by HEVs (Hybrid Electric Vehicles), operating profit actually increased by 5.5%. Consequently, the operating profit margin reached 5.9%, up 0.5 percentage points from the same period last year, demonstrating solid profitability. On the other hand, net income decreased by 24.2% year-on-year to 1.9317 trillion won, influenced by factors such as increased corporate tax expenses. Compared with securities firm forecasts, revenue fell slightly short, but operating profit delivered a favorable result thanks to exchange rate effects and strong HEV performance.

Looking at performance by segment, automotive revenue was 33.0058 trillion won, down 10.0% year-on-year, but automotive operating profit surged 24.8% to 2.1350 trillion won. Financial sector revenue was 9.1900 trillion won, and the other segment recorded 2.8620 trillion won. Selling, general and administrative expenses, reflecting company-wide cost efficiency efforts, decreased by 19.2% year-on-year to 4.6450 trillion won. Global wholesale sales totaled 921,000 units. In the domestic market, sales fell to 131,000 units, a 27.2% decline due to strike aftermath, while the European market also saw an 18.0% drop in wholesale sales as internal combustion engine lineup efficiency was optimized. Conversely, in the U.S. market, HEV wholesale sales increased by 18.4%, achieving a record-high sales share of 26.8%, which helped defend against downside pressure on performance.

Meanwhile, Hyundai Motor revised its annual operating guidance disclosure to reflect rapid changes in the domestic and international business environment, including decreased global demand due to expanding geopolitical risks. The company lowered its initial annual global wholesale sales target from 4.16 million units to 4.00 million units. The annual consolidated operating profit margin guidance was also lowered from the previous 6.3% to 7.3% range to 5.5% to 6.5%, and the automotive segment investment plan was scaled back from the existing 17.8 trillion won to 16 trillion won. However, the revenue growth rate forecast and free cash flow (FCF) forecast excluding the financial sector were maintained at their previous levels. Hyundai Motor plans to actively promote sales recovery by fully launching major new models such as the Ioniq 3 in the European market during the fourth quarter and normalizing domestic and overseas production.

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*This content was translated by AI.View Original