"Hyundai Motor Regroups in Q3 ... Expects a Rebound from the New-Model Effect in Q4" — BNK Investment & Securities

[Financial News] An analysis suggests that Hyundai Motor’s third-quarter results will fall short of consensus, but that a rebound is expected from the fourth quarter as new high-volume models are launched.
On the 21st, BNK Investment & Securities forecast that Hyundai Motor’s consolidated revenue for the third quarter would fall 5.1% from a year earlier to 44.3382 trillion won, while operating profit would decline 7.8% to 2.3382 trillion won. That would be 8.5% below the consensus forecast of 2.5546 trillion won in operating profit.
Lee Sang-hyun, an analyst at BNK Investment & Securities, said, “Consolidated wholesale sales in the third quarter came to 909,000 units, affected by production disruptions, including the aftermath of a fire at a parts supplier and strikes, intensifying global competition, and aging models ahead of new-model launches.”
Revenue in the vehicle segment is expected to fall 8.8%, but the finance and other segments are expected to soften the decline, limiting the drop in consolidated revenue to 5.1%. Profitability was pressured by a heavier fixed-cost burden due to production disruptions and higher material costs, but these are expected to be partly offset by the base effect of U.S. tariffs and reversals of sales warranty provisions resulting from a lower quarter-end exchange rate, among other factors.
The analyst said, “The share price has fallen amid a decline in the won-dollar exchange rate, production disruptions and concerns about market-share losses as competition intensifies in some markets,” adding, “The company also appears to be working hard internally to turn things around.” In fact, at its CID last August, Hyundai Motor announced an ambitious plan to launch at least 100 new and upgraded models in global markets by 2030.
From the fourth quarter, new-model launches among high-volume models such as the Elantra and Hyundai Tucson are expected to boost wholesale sales and revenue. In 2027, a Hyundai Santa Fe-based extended-range electric vehicle (EREV) and the Genesis GV70 EREV are set to launch targeting North America. With a driving range of at least 900 km on a single charge and refueling, they are expected to become key profit drivers that help sidestep the chasm.
The robotics growth catalyst is also said to be becoming more tangible. Boston Dynamics’ Atlas is scheduled to begin proof-of-concept (PoC) demonstrations on production lines after October 2026, then be phased into mass-production processes at HMGMA’s U.S. plant in 2028. The analysis also expects the company’s value to be increasingly recognized in the meantime, including through an IPO.
[email protected] Kim Dong-chan Reporter