HL Mando (204320) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales reached KRW 2,462 bn, up 1.6% year-over-year, driven by growth in the Americas and India despite lower global vehicle production.

• Operating profit for Q4 2025 was KRW 79.7 bn, down 28.2% year-over-year due to one-off provisions.

• Full-year 2025 sales totaled KRW 9,455 bn, a 6.9% increase year-over-year, with operating profit at KRW 357.1 bn, slightly down 0.5% year-over-year.

• New business wins in FY25 accumulated to KRW 11.9 tn, with a strong focus on E-Products and major program wins.

• Dividend per share increased to KRW 750, with a payout ratio of 35%.

Financial highlights

• Q4 2025 operating margin was 3.2%, down from 4.6% in Q4 2024.

• Net income for Q4 2025 was KRW 29.1 bn, down from KRW 49.8 bn in Q4 2024, impacted by increased corporate income tax.

• Recognized one-off costs of KRW 43 bn, including quality-related provisions.

• Profit before tax in Q4 2025 was KRW 56.5 bn, up from KRW 51.8 bn year-over-year.

Outlook and guidance

• FY26 sales guidance set at KRW 9.6 tn, a 1.8% year-over-year increase.

• FY26 new business wins target is KRW 13.0 tn, up 9.6% year-over-year.

• India expected to be the primary growth engine in FY26, with 25% sales growth forecasted.

• Five-year CAGR target of 8% to reach KRW 14.1 tn by 2030.