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Hyundai Mobis Q4 Profit Plunges 40% on Equity Losses, US Tariffs

Hyundai Mobis reported a sharp 39.9% year-on-year decline in fourth-quarter net profit, largely due to losses from equity investments in group affiliates and the impact of US tariffs. The company's operating profit also fell by 5.6%, although sales saw a modest increase of 4.7%. For the full year 2025, net profit decreased by 9.7%, but operating profit grew by 9.2%, driven by strong manufacturing operations. The company plans to boost R&D spending to over 2 trillion won this year to strengthen its future mobility competitiveness.

Key Points: Hyundai Mobis Net Profit Down 40% in Q4

  • Q4 net profit fell 39.9%
  • Operating profit down 5.6%
  • Missed analyst expectations
  • Blamed equity losses & US tariffs
2 min read

Hyundai Mobis' net profit down 39.9 pc on equity losses, US tariffs

Hyundai Mobis reports a 39.9% drop in Q4 net profit due to equity investment losses and US auto parts tariffs, missing market forecasts.

Hyundai Mobis' net profit down 39.9 pc on equity losses, US tariffs
"The decrease in net income was attributed to shareholding losses from affiliates... as well as effects from the auto parts tariffs imposed by Washington. - Company Official"

Seoul, Jan 28

Hyundai Mobis, South Korea's leading auto parts maker, said on Wednesday its fourth-quarter net profit dropped 39.9 percent from a year earlier due to losses from equity investment in group affiliates, as well as the effects of Washington's sectoral tariffs.

Net profit for the three months ended in December totalled 768.1 billion won (US$536.4 million), compared with 1.28 trillion won from the same period in 2024, the company said in a regulatory filing.

Operating profit for the period came to 930.5 billion won, down 5.6 percent from a year ago. Sales rose 4.7 percent to 15.39 trillion won.

The earnings fell short of market expectations. The average estimate of net profit by analysts stood at 1.05 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

A company official said the decrease in net income was attributed to shareholding losses from affiliates under Hyundai Motor Group, as well as effects from the auto parts tariffs imposed by Washington.

For the entirety of 2025, the company's net profit fell 9.7 percent to 3.66 trillion won. Annual operating profit, however, gained 9.2 percent to 3.35 trillion won, while sales rose 6.8 percent to 61.11 trillion won.

The company said its annual gain in operating profit was led by its manufacturing operations, including module assembly and parts production.

Sales from the segment climbed 5.9 percent on-year to 47.8 trillion won, supported by the full-scale operation of electrification plants in North America and robust growth in high value-added core components, such as automotive electronics.

Hyundai Mobis said it plans to continue facility investments to strengthen its future mobility competitiveness, with research and development (R&D) spending expected to exceed 2 trillion won for the first time this year.

- IANS

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Reader Comments

P
Priya S
Interesting to see sales still grew despite the profit drop. The electrification plants in North America seem to be a good bet for the long term. Indian companies should also focus on such high-value segments like automotive electronics. The market expectation miss is quite significant though. 🤔
R
Rohit P
A 39.9% drop is huge! This is a lesson in diversification. Relying too much on group affiliates and one market (US) can backfire. Indian auto sector is watching closely as many of our companies are also global suppliers. The operating profit growth is the only silver lining here.
S
Sarah B
From an investor perspective, missing estimates by that wide a margin is a red flag. However, committing over 2 trillion won to R&D is a bold and necessary move for an auto parts company in the EV age. The long-term strategy seems right, even if the short-term numbers are painful.
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Vikram M
The US tariffs are a major headwind. It highlights the geopolitical risks for global supply chains. On a positive note, their manufacturing ops in module assembly are doing well. Maybe there's an opportunity for Indian manufacturers to fill some gaps if trade tensions persist? 🚗
K
Karthik V
Respectfully, a 9.7% annual profit drop isn't a disaster, but the Q4 figure is alarming. It feels like the company might be downplaying the affiliate loss issue. The focus on R&D is good, but they need to manage their internal investments better. Hope they turn it around soon.

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