HD Hyundai (267250) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 3.5% year-over-year to KRW 17.1 trillion, with operating profit reaching a record high of KRW 1.29 trillion, up 46.5% sequentially and 62.1% year-over-year, and net income attributable to owners at KRW 219.2 billion.

• The group maintained a strong cash position, with cash and cash equivalents at KRW 7.95 trillion at quarter-end, and continued to invest in R&D and capital expenditures to support future growth.

• A quarterly dividend of KRW 900 per share, totaling KRW 63.6 billion, was declared, in line with the policy to return at least 70% of separate net income to shareholders.

• Net income rose 52.9% year-over-year, with a slight sequential increase.

Financial highlights

• Q1 2025 revenue: KRW 17.1 trillion (+3.5% YoY), operating profit: KRW 1.29 trillion (+62.1% YoY), net income attributable to owners: KRW 219.2 billion.

• Gross margin improved to 12.8% from 9.2% year-over-year.

• Cash and cash equivalents increased to KRW 7.95 trillion from KRW 5.67 trillion at year-end 2024.

• Debt-to-equity ratio at 190.6%, consolidated debt ratio at 192.6%, net debt ratio at 18.3%.

• Operating margin: 7.5% (up 2.7 percentage points YoY).

Outlook and guidance

• Management expects continued growth in shipbuilding, offshore, and green energy segments, supported by robust order backlogs and global demand for eco-friendly solutions.

• Oil prices expected to weaken due to increased supply and global economic slowdown.

• The company is expanding in renewable energy, smart grid, and energy storage, with new investments and partnerships.

• Shipbuilding sector to benefit from U.S. restrictions on Chinese shipyards and steady LNG carrier orders.

• Cautious outlook on global macroeconomic risks, including trade tensions and commodity price volatility.