Hyundai Motor's operating profit last year was 11.4679 trillion won, down 19.5% from the previous year. However, sales recorded a higher growth rate than the guidance. Uncertain external factors such as tariff negatively affected operating profit.
Hyundai Motor Co. held a management results conference call on the 29th and announced that its 2025 annual results on an IFRS consolidation basis were wholesale sales of 4,138,389 units, sales of 186.2545 trillion won, operating profit of 11.4679 trillion won, recurring profit of 13.8419 trillion won, and net income of 10.3648 trillion won (including noncontrolling interests). Despite unfavorable industry conditions such as the impact of U.S. tariffs, it achieved the "2025 consolidated annual guidance" released last September of year-on-year annual sales growth of +5.0–6.0% and an operating margin of 6.0–7.0%. Annual sales growth for 2025 was 6.3% and the operating margin was 6.2%.
Hyundai Motor's fourth-quarter 2025 results were wholesale sales of 1,033,043 units, sales of 46.8386 trillion won (automotive 36.5903 trillion won, finance and other 10.2482 trillion won), operating profit of 1.6954 trillion won, recurring profit of 1.6660 trillion won, and net income of 1.1840 trillion won (including noncontrolling interests).
Hyundai Motor's fourth-quarter 2025 sales increased 0.5% year on year, driven by expanded sales of higher value-added models including hybrid (HEV) and the Genesis brand, resulting in an improvement in average selling price (ASP) and aided by favorable exchange rates. However, the operating margin was 3.6% due to factors including the implementation of contingency measures notwithstanding U.S. tariffs, an increase in global incentives, lower volumes, and one-time expenses.
A Hyundai Motor official said, "In the fourth quarter, proactive contingency plans offset some of the negative impact of tariffs, but inventory sold in the fourth quarter to which a 25% tariff rate applied limited the effect of the tariff rate reduction," and said, "However, growth continues as sales expand in North America and the global share of hybrid vehicles increases."
▲2025 vehicle sales
Hyundai Motor sold 4,138,389 units globally in 2025 (712,954 units domestically, 3,425,435 units overseas). This was a 0.1% decrease compared with the previous year. For eco-friendly vehicles, including 275,669 electric vehicles and 634,990 hybrid vehicles, sales rose 27.0% year on year to 961,812 units. (※ based on wholesale sales)
Hyundai Motor sold 712,954 units in the domestic market, up 1.1% year on year, supported by strong sales of new SUVs such as the Ioniq 9, Palisade HEV and Nexo.
Overseas sales were 3,425,435 units, down 0.3% year on year, but in the U.S. market, aided by a diversified SUV lineup and strong HEV sales, sales rose 1.9% year on year to 1,006,613 units. Hyundai Motor surpassed 1 million annual wholesale sales in the U.S. for the first time since its founding.
Hyundai Motor's global eco-friendly vehicle sales in 2025 rose 27.0% year on year to 961,812 units, driven by an expanded hybrid lineup and increased sales of SUV hybrids in North America. Hybrid vehicles sold 634,990 units and electric vehicles sold 275,669 units.
Hyundai Motor's 2025 sales rose 6.3% year on year to 186.2545 trillion won, exceeding guidance (+5.0–6.0%). Sales rose on the back of strong sales of higher value-added models centered in developed markets, mix improvement and price increases, and favorable exchange rates. Operating profit for 2025 fell 19.5% year on year to 11.4679 trillion won due to the impact of U.S. tariffs and higher global incentives, but the operating margin (6.2%) met the guidance profitability.
A Hyundai Motor official said, "2025 was a difficult year due to slowing global demand, intensified competition in key regions, increased price competition from Chinese firms' overseas expansion, and uncertain external conditions such as tariffs," and said, "However, through continuous efforts to improve mix and flexibility in sales strategies through diverse powertrains, sales achieved a higher growth rate than guidance and the operating margin recorded profitability in line with guidance."
Hyundai Motor expects that unpredictable business conditions will continue this year, including slowing growth rates in major global markets, intensified competition in emerging markets, and expanded macroeconomic uncertainty. To overcome these conditions, it plans to prepare sustained growth momentum through rigorous analysis of complex internal and external management risks, meticulous internal diagnosis to secure fundamental future competitiveness, and bold innovation.
Hyundai Motor provided an annual consolidated guidance for 2026 and also announced investment plans.
In the guidance, Hyundai Motor set the 2026 annual wholesale sales target at 4,158,300 units. It also set a consolidation sales growth target of 1.0–2.0% year on year and a consolidated operating margin target of 6.3%–7.3%.
Regarding major investment plans for 2026, it said it plans to invest a total of 17.8 trillion won, including 7.4 trillion won in R&D investment, 9 trillion won in capital expenditures (CAPEX), and 1.4 trillion won in strategic investments, to secure future competitiveness through product development of eco-friendly vehicles including HEV and EREV and investments in core autonomous driving and AI technologies for the SDV transition.
Based on its shareholder return policy, Hyundai Motor decided the year-end dividend for 2025 at 2,500 won per share. This is to guarantee the annual minimum dividend of 10,000 won per share under the shareholder return policy, despite consolidated net income attributable to controlling shareholders for 2025 having decreased 24.6% year on year. Accordingly, the annual dividend for 2025 was set at 10,000 won per share, including 7,500 won, the sum of dividends for the first through third quarters.
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