Hyundai Mobis Q4 Net Profit Slides Nearly 40% Amid Equity Losses and US Tariff Pressure
Hyundai Mobis reports a sharp 39.9% drop in Q4 net profit due to equity investment losses and impact of US auto parts tariffs.
Hyundai Mobis (PC- Social Media)
Seoul, Jan 28 (IANS) Hyundai Mobis, South Korea's leading auto parts maker, said on Wednesday its fourth-quarter net profit dropped 39.9 percent from a year earlier due to losses from equity investment in group affiliates, as well as the effects of Washington's sectoral tariffs.
Quarterly Financial Performance
Net profit for the three months ended in December totalled 768.1 billion won (US$536.4 million), compared with 1.28 trillion won from the same period in 2024, the company said in a regulatory filing.
Operating profit for the period came to 930.5 billion won, down 5.6 percent from a year ago. Sales rose 4.7 percent to 15.39 trillion won.
Earnings Miss Market Expectations
The earnings fell short of market expectations. The average estimate of net profit by analysts stood at 1.05 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
A company official said the decrease in net income was attributed to shareholding losses from affiliates under Hyundai Motor Group, as well as effects from the auto parts tariffs imposed by Washington.
Full-Year 2025 Performance Overview
For the entirety of 2025, the company's net profit fell 9.7 percent to 3.66 trillion won. Annual operating profit, however, gained 9.2 percent to 3.35 trillion won, while sales rose 6.8 percent to 61.11 trillion won.
Manufacturing and Electrification Drive Growth
The company said its annual gain in operating profit was led by its manufacturing operations, including module assembly and parts production.
Sales from the segment climbed 5.9 percent on-year to 47.8 trillion won, supported by the full-scale operation of electrification plants in North America and robust growth in high value-added core components, such as automotive electronics.
Future Investment and R&D Focus
Hyundai Mobis said it plans to continue facility investments to strengthen its future mobility competitiveness, with research and development (R&D) spending expected to exceed 2 trillion won for the first time this year.