Hyundai Motor posted an all-time high revenue of 190 trillion won last year. But operating profit was 11.4679 trillion won, down nearly 20% from a year earlier. With more than 4 trillion won paid just in U.S. tariffs, operating profit came in below market expectations.
Hyundai Motor said on the 29th that revenue (on a consolidation basis) came to 186.2545 trillion won last year. That was up 6.3% from a year earlier and a record high. In particular, fourth-quarter revenue alone was 46.8386 trillion won, up 0.5% from a year earlier, the highest ever for a fourth quarter.
Although last year's wholesale sales were 4,138,389 units, down 0.1% from a year earlier, strong sales of relatively higher-priced eco-friendly vehicles lifted revenue. It sold a total of 961,812 units, including 275,669 electric vehicles and 634,990 hybrid vehicles, up 27.0% from a year earlier.
The fact that wholesale sales in the U.S. market reached 1,224,000 units for the first time, surpassing 1 million, also amplified the favorable exchange-rate effect. The average won-dollar exchange rate in the fourth quarter last year was 1,451.0 won, up 3.9% from a year earlier.
However, operating profit was 11.4679 trillion won, down 19.5% from a year earlier. The operating margin was 6.2%, down 1.8 percentage points from 2024 (8.1%). Previously, the securities industry projected Hyundai Motor's operating profit last year at 12.4443 trillion won, down 12.6%, but profit came in even lower than that. Net profit was 10.3648 trillion won, down 21.7%.
The impact mainly reflects expanding tariff burdens in the U.S. market. Hyundai Motor spent 4.11 trillion won on tariff expenses last year. In the fourth quarter as well, it had to spend 1.46 trillion won on tariff expenses as auto tariffs were lowered from 25% to 15% only in November. Accordingly, fourth-quarter operating profit fell 39.9% from a year earlier to 1.6954 trillion won.
A Hyundai Motor official said, "2025 was a difficult year due to an uncertain external environment, including a slowdown in global demand, intensified competition in key regions, heightened price competition as Chinese companies expanded overseas, and tariffs," adding, "But through continued efforts to improve mix and flexible sales strategies via diverse powertrains (drivetrain systems), we achieved a revenue growth rate above guidance (target) and an operating margin in line with guidance." Hyundai Motor's guidance last year called for revenue growth of 5%–6% and an operating margin of 6%–7%.
Hyundai Motor set this year's revenue growth target at 1.0%–2.0% from a year earlier and its operating margin target at 6.3%–7.3%. It set its annual wholesale sales target at 4,158,300 units, up 0.5% from last year's sales. A Hyundai Motor official said, "We expect a continuation of a challenging operating environment this year, including slower growth in major global markets, intensified competition in emerging markets, and greater macroeconomic uncertainty."
To overcome these conditions, the company said it will coolly analyze internal and external management risks and secure a continuous growth momentum through bold innovation. Key investment areas include development of eco-friendly vehicles such as hybrid electric vehicles (HEV) and extended-range electric vehicles (EREV), and core technologies for autonomous driving and artificial intelligence (AI) to support a transition to software-defined vehicles (SDV). It announced plans to invest a total of 17.8 trillion won, including ▲ research and development (R&D) investment of 7.4 trillion won ▲ facility investment (CAPEX) of 9 trillion won ▲ strategic investment of 1.4 trillion won.
Hyundai Motor set its year-end 2025 dividend at 2,500 won per share. Including a combined 7,500 won for dividends in the first through third quarters, the total comes to 10,000 won per share. A Hyundai Motor official said, "Although consolidated net profit attributable to controlling shareholders in 2025 decreased 24.6% from a year earlier, this is to guarantee at least 10,000 won per share in annual dividends under our shareholder return policy," adding, "We will continue efforts to pursue sustainable growth and enhance shareholder value despite a difficult and changing business environment ahead."