Hyundai Motor reports 5.5% rise in Q3 operating profit, beats forecasts

Hyundai Motor reported a 5.5% increase in its operating profit for the third quarter, surpassing initial forecasts. The South Korean automaker achieved an operating profit of 2.7 trillion won ($2.01 billion) for the period between July and September, up from 2.5 trillion won in the same period last year. Analysts had predicted a profit of 2.4 trillion won.

The boost was attributed to favorable exchange rates and a partial recovery from partial strikes and weaker sales of older models. However, the company has lowered its target for operating profit margin in 2026 to between 5.5% and 6.5%, down from the previous range of 6.3% to 7.3%, while also reducing its annual vehicle sales forecast to four million units from 4.16 million.

The company also revised its capital expenditure plan for the year downward to 16 trillion won from 17.8 trillion won. Revenue for the quarter fell by 3.4% compared to the previous year, reaching 45.1 trillion won. Industry analysts noted that Hyundai faces growing competition from Chinese electric vehicle manufacturers in both South Korea and Europe, particularly with its limited lineup of affordable electric vehicles.