Hyundai Motor Company (005380) Q4 2024 earnings summary

Executive summary

• Q4 2024 global wholesale volume decreased 2.2% year-over-year to 1,066,239 units; retail sales fell 0.8% to 1,075,434 units.

• Excluding China, Q4 wholesale rose 2% year-over-year, with strong North America sales (+4.4%) and robust hybrid and Genesis demand.

• Annual wholesale dropped 1.8% to 4,141,969 units; retail sales declined 2.7% to 4,044,513 units.

• Revenue increased 7.7% year-over-year to KRW 175.2 trillion, while net income grew 7.8% to KRW 13.2 trillion.

• SUV and eco-friendly vehicle sales mix increased, with hybrids surging 41.3% year-over-year in Q4 and eco-friendly vehicles making up 10.9% of 2024 sales.

Financial highlights

• Q4 consolidated revenue rose 11.9% year-over-year to KRW 46.6 trillion; operating income fell 17.2% to KRW 2.8 trillion.

• Q4 net income increased 12.3% year-over-year to KRW 2.5 trillion.

• Annual consolidated revenue up 7.7% to KRW 175.2 trillion; operating income down 5.9% to KRW 14.2 trillion; net income up 7.8% to KRW 13.2 trillion.

• Finance division revenue jumped 44.6% year-over-year in Q4; annual finance segment revenue surged 27% to KRW 28.4 trillion, with operating profit up 79.1% in Q4 and 29.6% annually.

• Q4 COGS ratio increased 0.5 percentage points to 80.5%; annual COGS ratio: 79.6%.

Outlook and guidance

• 2025 sales target set at 4.17 million units, up 32,000 units from 2024.

• Revenue expected to grow 3%-4% in 2025, with operating profit margin targeted at 7%-8%.

• CapEx planned at KRW 8.6 trillion; R&D investment at KRW 6.7 trillion (+37.2% year-over-year).

• Free cash flow projected between KRW 0.5 trillion and KRW 2 trillion.

• Shareholder return policy to deliver 35%+ total return, with minimum dividend of KRW 10,000 per common share and KRW 4 trillion in buybacks from 2025-2027.

• Management highlighted forward-looking statements are subject to risks including economic conditions, currency fluctuations, and market competition.