Key Facts
• July 24, Hyundai announced Q2 operating profit fell 16% year-on-year.
• Operating profit: 3.6 trillion won ($2.64 billion), down from last year.
• U.S. tariffs on auto parts added 828 billion won in costs for the quarter.
• Revenue rose 7% year-on-year to 48.3 trillion won, exceeding market forecast of 47 trillion won.
• Market estimate for operating profit was 3.5 trillion won, slightly below actual results.
• Hyundai maintained its full-year profit target despite tariff challenges.
• Weaker won partially offset the impact of U.S. tariffs.
• Hyundai plans to monitor profit margin forecasts and adjust targets as needed.
• Following the earnings report, Hyundai’s stock dropped 3.2%.
Summary
Hyundai Motor Company reported a 16% decline in Q2 operating profit, totaling 3.6 trillion won ($2.64 billion), primarily due to U.S. tariffs on auto parts, which added 828 billion won in costs. Despite this, revenue grew 7% year-on-year to 48.3 trillion won, surpassing market expectations. The company maintained its full-year profit target, citing the weaker won as a mitigating factor against tariff impacts. Hyundai emphasized its commitment to monitoring profit margins and adjusting targets based on global market conditions. Following the announcement, Hyundai’s stock fell by 3.2%.
