Hyundai Raises Operating Profit 5.5% to 2.68 Trillion Won in Third Quarter
Key Facts
Hyundai Motor said on October 29 that third-quarter 2026 operating profit rose 5.5% year over year to 2.68 trillion won, while its operating margin increased 0.5 percentage points to 5.9%. Profit exceeded the LSEG SmartEstimate of 2.4 trillion won, Reuters reported. The improvement in operating performance came despite declines in revenue and sales, reflecting a divergence between profitability and business volume during the period. The company said a favorable foreign-exchange rate, cost cuts and a product mix driven by hybrid vehicle sales contributed to the result. Hyundai also revised its annual sales, margin and investment targets that day.
Revenue totaled 45.11 trillion won from July to September, down 3.4% from the same quarter a year earlier, which the company attributed to production constraints that affected sales volume. Global wholesale sales fell 11.3% to 920,710 vehicles. Hyundai said fewer working days because of holidays, along with strike-related production constraints, weakened sales. Pressures included lower domestic sales and softer overseas demand, according to the presentation accompanying the company's results. Operating profit therefore rose while revenue and wholesale units declined year over year.
Hybrid vehicles supported the sales mix, accounting for 18.2%, up 2.7 percentage points from a year earlier. Sales reached 167,414 vehicles, up 3.8% year over year. The company said the increase helped improve the sales mix, alongside the contribution of a favorable foreign-exchange rate and cost cuts to profitability. The figures highlight the resilience of hybrid sales in a quarter when overall global sales declined. Hyundai linked its plans to increase production, expand sales of new models and improve its cost structure.
The company cut its 2026 wholesale sales target to 4 million vehicles and narrowed its target operating profit margin range to 5.5%–6.5% from 6.3%–7.3% previously. The revision comes as the quarterly operating margin stood at 5.9%, within the new annual range. It also cut its investment plan for the automotive sector to 16 trillion won from 17.8 trillion. Hyundai said the investment update reflects production volume disruptions and higher raw material costs. The company plans to increase production and expand sales of new models, including the Tucson and Elantra, while continuing to improve its cost structure to address market conditions.
In trading on November 3, Hyundai Motor shares fell 2.96% to 278,500 won, as South Korean stocks broadly declined. An Aju Press report linked the pressure to concerns over artificial intelligence investments and selling pressure in semiconductor stocks. The move came days after the third-quarter results were announced, but the report did not attribute the share decline to Hyundai's results. The company had released preliminary results under Korean International Financial Reporting Standards, which are subject to change after review by the external auditor. Hyundai said it aims to navigate the challenging business environment by increasing production, expanding sales of new models and improving costs.