Kia's 2025 annual business results were recorded as wholesale sales of 3,135,873 units, sales of 114.1409 trillion won, operating profit of 9.0781 trillion won, and an operating profit margin of 8.0%. On an annual basis, it not only achieved the highest ever sales revenue but also logged more than 100 trillion won in sales for the second consecutive year and recorded the highest-ever sales volume. However, operating profit dropped 28.3% after taking a direct hit from U.S. tariff bullying. Sales volume rose 1.5% year on year, sales increased 6.2%, and operating profit margin fell 3.8 percentage points year on year.
On the 28th, Kia announced its fourth-quarter 2025 results (Oct. to Dec.) on an IFRS consolidated basis: wholesale sales of 763,200 units, sales of 28.0877 trillion won, operating profit of 1.8425 trillion won, profit before tax (ordinary profit) of 2.1110 trillion won, and net income of 1.4709 trillion won. Compared with the fourth quarter of 2024, sales volume and operating profit fell 0.9% and 32.2%, respectively, but sales rose 3.5%, marking the highest fourth-quarter sales ever.
Kia said, "Fourth-quarter sales reached a record high on the back of continued global demand for eco-friendly vehicles, led by strong demand for hybrids in the United States and electric vehicles in western Europe." It added, "Although U.S. tariff effects and increased competitive costs such as incentives in the North American and European markets rose somewhat, broad cost-cutting efforts and favorable currency effects offset them."
As part of investor guidance, Kia also announced its 2026 business plan. Kia expects this year's annual sales target (3.35 million units) to increase 6.8% from last year and annual sales (122.3 trillion won) to rise 7.2% over the same period. It presented operating profit of 10.2 trillion won and an annual operating profit margin of 8.3%. Kia said, "Despite cost increases from U.S. tariff application and intensified competition, we expect to continue policies for recovery of profitability and growth based on average selling price (ASP) growth from expanded sales of eco-friendly vehicles."
In the fourth quarter of last year, Kia sold 763,200 units (wholesale basis) in global markets, including 133,097 units domestically and 631,03 units overseas, a 0.9% decrease from the same period a year earlier.
In the domestic market, sales fell 5.6% year on year due to year-end demand decline related to the extension of the special consumption tax cut. In overseas markets, sales remained roughly flat year on year (+0.2%) thanks to increased U.S. hybrid-centered sales and expanded Sonet-centered sales in the Indian market.
Looking at the business results, sales rose 3.5% year on year to 28.0877 trillion won despite a roughly 6,000-unit (0.9%) decrease in global sales volume compared with the fourth quarter of 2024, driven by price effects and an increase in average selling price (ASP) from favorable currency effects. In terms of operating profit, although the U.S. tariff rate was adjusted to 15% from Nov. 1 last year, depending on inventory levels affected by existing tariffs within the U.S. subsidiary, about two months of 25% tariff burden effect was reflected on an actual sales basis, and due to increases in overseas market incentives, operating profit fell 32.2% year on year to 1.8425 trillion won.
The cost of sales ratio rose 2.9 percentage points year on year to 81.7% due to the impact of U.S. tariffs despite favorable currency effects and expanded sales revenue. The selling, general and administrative expense ratio rose 0.6 percentage points over the same period to 11.8% due to increased exchange rate volatility at quarter end and a rise in warranty expense ratio.
Despite profitability deterioration from tariffs, Kia, reflecting management confidence in bold growth strategies and recovery of earnings power, will provide proactive rewards for management performance to shareholders and investors who supported the company's growth. This year's shareholder dividend was set at 6,800 won per share on an annual basis. That is an increase of 300 won compared with 2024 (6,500 won).
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