Hyundai reports ₩2.54 operating profit in Q3, down 29% from the same quarter last year

Hyundai reported its third-quarter results, showing a ₩2.54 trillion ($1.8 billion) operating profit for the period ending September 30, down 29% from the same quarter last year.

Analysts had estimated ₩2.55 trillion, so the figure was roughly in line. Revenue came in at ₩46.7 trillion, up 8.8% from a year earlier and marking a record high for any third quarter.

The company said the performance was supported by demand for electric and hybrid vehicles in North America and Europe.

The quarter played out under heavy U.S. tariff pressure, which Hyundai acknowledged has been a major issue for its cost base.

Last month, the company lowered its profit outlook for 2025 but increased its revenue target as it prepares to raise investment in U.S. facilities. Hyundai said this is aimed at reducing some of the impact of American duties on imported vehicles and components.

The company’s shares in Seoul fell as much as 7.2% after a new trade deal between South Korea and the U.S. was announced, though they later recovered and closed 2.7% higher.

Tariffs increase cost burden

Hyundai stated that U.S. tariffs cost the company ₩1.8 trillion in the third quarter, compared to ₩828 billion in the previous quarter. The company said, “Changes in the trade environment, including tariffs, would impact our profits and are a major risk factor for future business operations.”

Hyundai also expects sales in emerging markets to slow further, though it did not specify markets or timing.

Despite the tariff burden, Hyundai’s U.S. retail sales rose 12.7% from a year earlier. Sales were supported by the company’s electric vehicle lineup, which had benefitted from a tax incentive that expired at the end of September, and by the sale of higher-margin models.

Hybrid vehicles made up 20% of Hyundai’s U.S. sales during the quarter, marking the highest share recorded for the company in that market to date.

In Europe, Hyundai reported 3.2% year-on-year growth in sales. Eco-friendly models made up a significant portion of this, with battery-operated and hydrogen-powered vehicles accounting for 49% of total sales in the region.

The company said demand for its low-emission vehicles in Europe remains steady.

Strategy shifts toward hybrids and Genesis

Hyundai, together with its affiliate Kia, forms the world’s third-largest automaking group by global sales. The automaker said it will maintain its revenue and profit margin targets for the year, even with the uncertainty around tariffs.

The company, which also includes Hyundai Mobis in its wider group structure, said the recent trade agreement between South Korea and the U.S. has “resolved all of the uncertainty” regarding automobile tariffs, according to a Hyundai executive speaking to reporters on Thursday.

The firm is planning to expand its hybrid lineup and is aiming for stronger sales of its Genesis luxury sedan line in 2026. It is also considering producing a Genesis hybrid model in the U.S. to further reduce tariff pressure and align local production with U.S. market demand.

Hyundai said demand for pure battery electric vehicles may recover after 2030, though it did not provide any details.

The company booked ₩2.5 trillion in operating profit for July to September last year, compared to ₩3.6 trillion in the same quarter a year earlier. Analyst consensus had expected revenue of ₩45.8 trillion, meaning Hyundai outperformed on the top line.

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