Hyundai Motor's Q3 Net Profit Drops 24% as Sales Weaken and Targets Are Cut

what happened

Hyundai Motor posted a 24% year-on-year drop in July–September net profit, to 1.932 trillion won (about $1.44 billion), the company said on Thursday. That fell short of the 2.406 trillion won FactSet consensus, according to Dow Jones Newswires. Revenue slid 3.4% to 45.110 trillion won, while operating profit rose 5.5% to 2.677 trillion won.

Global wholesale vehicle shipments dropped 11% in the quarter, and domestic wholesale sales in South Korea fell 27%. The carmaker blamed fewer working days due to Korean holidays, strike-hit output and softer demand worldwide. Labor action had repeatedly disrupted Korean plants earlier this year until a deal was reached in late August.

Given the tougher backdrop, Hyundai reduced its 2026 sales goal to 4.0 million vehicles from 4.16 million. It also trimmed its operating margin target to 5.5%–6.5% from 6.3%–7.3%, and cut its investment budget to 16 trillion won from 17.8 trillion. The shares edged about 1% higher after the release but remain roughly flat for the year after steep earlier declines.

why it matters

The profit miss and downgraded guidance point to weaker auto demand and tougher competition from Chinese brands at home and abroad. Investors will watch how quickly the company recovers sales lost to strikes and whether it can hold its margins.

market impact

Hyundai Motor shares: weaker sales and lower targets weigh on the stock, a pressure point for Korean carmakers

• ▼Hyundai Motor shares pressure down — lowered sales and margin targets cut earnings expectations

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