Hyundai Motor: Maintains annual profit target this year

Hyundai Motor: Maintains annual profit target this year

Hyundai Motor Co., the world's third-biggest automaking group by sales, reported a 2% rise in first-quarter operating profit on Thursday, meeting analysts' estimates. The company's operating profit for the January-March period was 3.6 trillion won ($2.52 billion), compared to 3.56 trillion won in the same period last year [1].

The South Korean automaker's earnings were driven by accelerated customer purchases ahead of U.S. tariffs and a weak South Korean won. The results were in line with a 3.5 trillion won LSEG SmartEstimate drawn from 17 analysts [1].

Investors are closely watching Hyundai's first-quarter results due to the potential earnings impact of President Trump's 25% levy on foreign-made vehicles shipped to the U.S., effective since early April. Some analysts have recently cut their operating-profit forecasts for Hyundai Motor to reflect a possible earnings hit from sweeping U.S. tariffs [2].

Despite the challenges, Hyundai Motor is expected to maintain its annual profit target for 2025. The company's net profit for the first quarter was 3.360 trillion won ($2.36 billion), compared to 3.231 trillion won a year earlier. Revenue for the period was 43.305 trillion won, according to FactSet [2].

Hyundai Motor's sister company, Kia Corp, also reported increased sales but with shrinking operating profits in the first quarter. Kia's sales were 27.81 trillion won, while its operating profit was 3.23 trillion won, marking a 6.1% on-year growth and a 5.8% decline, respectively [3].

To mitigate tariff-related risks, Hyundai Motor Group plans to expand its U.S. production capacity and freeze the prices of new vehicles sold in the U.S. through early June. This move aims to ease consumer concerns over rising costs [3].

References:
[1] https://www.reuters.com/business/autos-transportation/hyundai-motor-reports-2-rise-q1-operating-profit-2025-04-24/
[2] https://www.marketwatch.com/story/hyundai-motor-tipped-to-post-steady-first-quarter-results-earnings-preview-142a9d27
[3] https://www.bizzbuzz.news/industry/auto/hyundai-kia-poised-to-report-slowing-operating-profit-in-q1-1359537