Hyundai Wia (011210) Q2 2026 earnings summary

Executive summary

• Revenue grew 8.0% year-over-year and quarter-over-quarter to 2,353.7 billion KRW in 2Q26, driven by increased sales in modules, engines (notably in Mexico and China), TMS, and defense exports.

• Net income surged 192.1% year-over-year and 42.9% sequentially, reaching 50.6 billion KRW, supported by significant FX gains and improved product mix.

• Operating profit declined 10.6% year-over-year and 2.3% sequentially, with margin compression to 2.1% due to lower sales in 4WD/CVJ and mobility solutions, and adverse mix changes in Russia and China.

• Revenue for H1 2026 was KRW 4,533.1 billion, up 6.9% year-over-year, driven by strong domestic auto sales and defense exports. Operating profit reached KRW 101.9 billion (2.2% margin), and net income was KRW 86.0 billion.

• The company completed the sale of its machine tool business and continues to invest in R&D and production capacity, focusing on electrification, smart mobility, and defense solutions.

Financial highlights

• Revenue: 2,353.7 billion KRW (+8.0% YoY, +8.0% QoQ) in 2Q26; H1 2026 revenue: KRW 4,533.1 billion (+6.9% YoY).

• Operating profit: 50.4 billion KRW (-10.6% YoY, -2.3% QoQ) in 2Q26; H1 2026 operating profit: KRW 101.9 billion (2.2% margin).

• Net income: 50.6 billion KRW (+192.1% YoY, +42.9% QoQ) in 2Q26; H1 2026 net income: KRW 86.0 billion.

• Income before tax: 75.1 billion KRW (+289.9% YoY, +41.8% QoQ), driven by FX gains.

• Cash and cash equivalents at period end: KRW 657.8 billion; total assets: KRW 7,345.1 billion; total equity: KRW 4,233.4 billion.

Outlook and guidance

• Growth in defense exports and module/TMS sales expected to continue.

• The company targets continued growth in electrification, mobility solutions, and defense exports, with a mid-term dividend payout ratio of 25–35%.

• Ongoing investments in production and R&D are planned, with a focus on global expansion and technology leadership.

• Anticipated challenges include volume decreases in Russia and product mix shifts in China.