Kia (000270) Q4 2025 earnings summary

Executive summary

• Q4 2025 global retail sales grew 1.6% year-over-year, with notable growth in India (+40.9%) and the U.S. (+1.7%), despite a 1.6% decline in global industry demand.

• Electrified vehicle sales rose 13.2% year-over-year, with HEVs leading growth and the share of electrified vehicles in global sales increasing to 23.9%.

• Revenue increased 3.5% year-over-year to KRW 28.088 trillion, but operating profit fell 32.2% to KRW 1.843 trillion due to U.S. tariff impacts and higher incentives.

• Net profit declined 15.5% year-over-year to KRW 1.471 trillion.

Financial highlights

• Q4 2025 revenue: KRW 28.088 trillion (+3.5% YoY); operating profit: KRW 1.843 trillion (-32.2% YoY); net profit: KRW 1.471 trillion (-15.5% YoY).

• Global ASP increased 4.7% YoY to KRW 39.1 million, driven by HEV/EV sales and FX effects.

• Cost of sales ratio rose to 81.7% (+2.9pp YoY); SG&A ratio up to 11.8% (+0.6pp YoY).

• Non-operating income improved by KRW 541 billion YoY, mainly from FX gains and asset disposals.

• Full-year 2025 sales revenue reached KRW 114.141 trillion (+6.2%), but operating profit fell 28.3% to KRW 9.078 trillion.

Outlook and guidance

• 2026 wholesale sales target: 3.35 million units (+6.8% YoY); retail sales expected to grow 6.5% YoY.

• 2026 revenue target: KRW 122.3 trillion (+7.2% YoY); operating profit target: KRW 10.2 trillion (margin 8.3%).

• Focus on SUV and HEV growth in the U.S., full EV lineup in Europe, and premium SUV strategy in India.

• New model launches in 2026 include Telluride, Seltos (ICE/HEV), EV2, and India-specific EV.

• Continued cost reduction efforts to offset tariff and incentive pressures.