Hyundai Mobis posted strong second-quarter results, with operating profit rising by more than a third from a year earlier, buoyed by robust sales of high-margin products and growth in its global after-sales service (A/S) parts business.
The South Korean auto parts supplier said on Thursday that sales reached 15.94 trillion won ($12.3 billion) in the three months ended June, up 8.7% from the same period a year earlier. Operating profit rose 36.8% to 870 billion won, while net profit declined 6.3% to 934.5 billion won.
The company attributed the performance to improved profitability from the full-scale operation of its North American electrification plant and the increased supply of high value-added electronic components. It also cited favorable foreign exchange rates and improved cost efficiency.
“Although some projects of major customers were partially delayed due to global tariff issues and a slowdown in electric vehicle demand, large-scale order schedules are concentrated in the second half,” a Hyundai Mobis official said. “We will continue to strive to achieve our annual target.”
In the first half of the year, Hyundai Mobis recorded 30.69 trillion won in sales and 1.65 trillion won in operating profit, increases of 7.6% and 39.7%, respectively. The company secured $2.12 billion in orders from non-affiliated global customers, about 30% of its $7.45 billion annual target.
In a move to enhance shareholder value, Hyundai Mobis said it would raise its interim dividend from 1,000 won to 1,500 won per share and repurchase 110 billion won worth of treasury stock. An additional 700,000 treasury shares will also be cancelled.
The company will host its 2025 CEO Investor Day on August 27 in Seoul, where President Lee Kyu-seok is expected to present updates on growth strategy and engage directly with shareholders.
