The tariff impact was strong, as expected. Hyundai Motor's operating profit in the third quarter fell by 29.2%. Hyundai Motor said that although uncertainty persists, it intends to pursue proactive and aggressive contingency plans.
Hyundai Motor held an earnings conference call on the 30th to announce its third-quarter 2025 results.
Wholesale sales of 1,038,353 units, IFRS consolidation-based revenue of 46 trillion 7,214 billion won (automobiles 36 trillion 7,145 billion won, finance and others 10 trillion 69 billion won), operating profit of 2 trillion 5,373 billion won, ordinary profit of 3 trillion 3,260 billion won, and net income of 2 trillion 5,482 billion won (including noncontrolling interests), it said.
Hyundai Motor achieved its highest third-quarter revenue on record, rising 8.8% year over year, supported by strong sales in major markets such as the United States and Europe, favorable exchange-rate effects and improved performance in the finance sector. The previous record for third-quarter revenue was 42 trillion 9,283 billion won in the third quarter of 2024.
Operating margin was 5.4%, down 2.9 percentage points year over year as U.S. tariff effects took effect.
José Muñoz, chief executive officer of Hyundai Motor, said, "On the back of solid business fundamentals and strategic responses to market volatility, we expanded global vehicle sales and achieved record third-quarter revenue," and said, "Operating profit was affected by increased incentives due to intensified market competition and by tariffs, but Hyundai Motor is laying the groundwork to strengthen profitability through optimized production strategies and a diversified powertrain strategy."
Hyundai Motor sold 1,038,353 units in global markets in the third quarter of 2025 (July–September). That is a 2.6% increase from the same period a year earlier. (※ based on wholesale sales)
In the domestic market, SUV sales grew thanks to the new-model effects of the Palisade hybrid (HEV) and the Ioniq 9, with 180,558 units sold, up 6.3% from a year earlier. Overseas, 857,795 units were sold, up 1.9% from a year earlier. While sales in emerging markets declined due to worsening external conditions, 257,446 units were sold in the United States, up 2.4% from a year earlier.
Global eco-friendly vehicle sales in the third quarter of 2025 (including commercial vehicles) totaled 252,343 units, up 25.0% year over year, driven by expanded electric vehicle (EV) share centered on Europe and strengthened hybrid lineups. Of these, EVs accounted for 76,153 units and hybrids for 161,251 units.
Revenue in the third quarter of 2025 was 46 trillion 7,214 billion won, up 8.8% year over year. Sales continued to rise on the back of strong demand in the North American market and favorable exchange rates. The average won-dollar exchange rate in the third quarter of 2025 was 1,385 won, up 1.9% from a year earlier.
Cost of sales ratio was 82.3%, up 2.1 percentage points from a year earlier. Selling and administrative expenses widened 16.9% year over year due to increases in marketing and sales warranty expenses. As a result, operating profit in the third quarter of 2025 was 2 trillion 5,373 billion won, down 29.2% year over year, and operating margin was 5.4%. This reflects the full impact of U.S. tariffs. Ordinary profit and net income were 3 trillion 3,260 billion won and 2 trillion 5,482 billion won, respectively.
Hyundai Motor said it expects the profit and loss effects from changes in the trade environment, such as tariffs, to act as major risk factors for future business activities. It also forecast that a difficult business environment is likely to continue, including continued sales slowdowns in emerging markets.
Although uncertainty persists, the company emphasized its determination to achieve the 2025 consolidation-based annual guidance through proactive and aggressive implementation of contingency plans. Hyundai Motor released a revised guidance at its CEO Investor Day in September, setting targets such as a 5.0–6.0% year-over-year consolidated revenue growth rate and a 6.0–7.0% consolidated institutional sector operating margin.
Based on the value-up program released last year, Hyundai Motor set the ordinary share dividend for the third quarter of 2025 at 2,500 won, a 25% increase from 2,000 won in the same period a year earlier.
A Hyundai Motor official said, "Despite macroeconomic changes in the business environment, Hyundai Motor will strive to faithfully implement its shareholder return policy of a total shareholder return (TSR) minimum of 35% to maximize shareholder value."
[OSEN]