Hyundai Mobis Reports Q3 Operating Profit of 780 Billion Won, Down 14% Year-on-Year Due to Tariff Impact

Sales Up 7% Driven by Expansion in Core Electronics and Component Supply

Hyundai Mobis announced on the 31st that its operating profit for the third quarter decreased by 14.1% year-on-year to 780.3 billion won. Sales reached 15.0319 trillion won, marking a 7.4% increase compared to the previous year, while net profit for the period amounted to 930.5 billion won.

Hyundai Mobis explained that the steady increase in supply of module products and core components, as well as the ramp-up of its new electrification plant in the United States, drove sales growth. In addition, strong global demand for after-service (A/S) parts and favorable exchange rates contributed to the expansion of its business scale.

However, due to the impact of U.S. tariffs, operating profit turned to a decline. The module and core components manufacturing division, a key business area, posted an operating loss of 37 billion won.

Hyundai Mobis stated that it aims to actively target the global market and overcome the unpredictable market environment by focusing on leading technological competitiveness. A Hyundai Mobis representative said, "For the first time, annual investment in research and development is expected to exceed 2 trillion won by the end of this year," adding, "We expect to continue increasing orders in the global market by strengthening our technological competitiveness in core mobility business areas such as electrification and electronics."

In particular, uncertainty has been resolved as the automobile tariff was reduced from the previous 25% to 15% following detailed tariff negotiations with the United States. Hyundai Mobis plans to defend profitability by continuously improving profitability and enhancing product competitiveness.

Furthermore, Hyundai Mobis stated that it is faithfully implementing measures to enhance shareholder value. While maintaining the total annual cash dividend at last year's level, the company increased the interim dividend from 1,000 won to 1,500 won. This year, Hyundai Mobis repurchased treasury shares worth 414.5 billion won and plans to cancel all of them by the end of the year. Additionally, the company will cancel an additional 700,000 treasury shares it already holds.