Kia (000270) Q2 2026 earnings summary

Executive summary

• Achieved record high quarterly sales and revenue in Q2 2026, with global retail sales up 6% YoY, outperforming a 3.8% industry demand decline.

• Electrified vehicle sales surged 60% YoY, comprising 35.3% of total sales, with robust growth in major markets.

• Global market share reached an all-time high of 4%, with notable gains in the U.S. HEV and Western Europe EV markets.

• H1 2026 revenue increased 9% YoY to KRW 62.54 trillion, driven by higher sales volumes and increased ASP from HEV/EV sales.

• Operating profit declined YoY due to increased incentives, U.S. tariffs, and FX-related warranty provisions.

Financial highlights

• Q2 2026 revenue rose 12.6% YoY to KRW 33.037 trillion, with consolidated sales units up 4.3% YoY to 803,985 units.

• Operating profit declined 4.9% YoY to KRW 2.629 trillion, with margin at 8%, down from 10.1% in H1 2025.

• Net profit increased 2.6% YoY to KRW 2.328 trillion in Q2, but H1 net profit fell to KRW 4.16 trillion from KRW 7.56 trillion in H1 2025.

• Non-operating income for Q2 2026 was KRW 440 billion, up KRW 205 billion YoY.

• Gross profit margin decreased to 18.3% in Q2 and 18.9% in H1 2026.

Outlook and guidance

• H2 2026 targets: 3.35 million wholesale units and KRW 10.2 trillion operating profit, with expected 10% growth in the second half.

• 2026 sales targets: 584k units in Korea (+7% YoY), 903k in the U.S. (+6% YoY), 575k in W. Europe (+13% YoY), 317k in India (+13% YoY).

• XEV mix target for Korea is 58%, with BEV at 20% and HEV at 38%.

• Company targets a 35% total shareholder return for 2025–2027, combining dividends and share buybacks.

• Management expects continued market uncertainty due to geopolitical risks, high interest rates, and FX volatility.