KOSPIAutomotive012330

Hyundai Mobis

₩384,500▲ 0.65%2026-10-02 close

Market Cap

₩34.4T

Turnover

₩61.1B

Volume

160,000 shares

Shares out.

89.8M

PER

10.3×

PBR

0.7×

EPS

₩40,794

Dividend Yield

1.54%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩6,500 per share · Prices as of the 2026-10-02 close

Report overview

Aftermarket Carries Profit; Orders and Restructuring Are the Variables

Hyundai Mobis grew both top line and profit in 2025, with revenue of KRW 61.118tn and operating profit of KRW 3.358tn, but the core debate is structural: most of the profit comes from the aftermarket division while module and core-parts margins remain razor-thin.

1
2025 consolidated revenue was KRW 61.118tn with operating profit of KRW 3.358tn and a 5.5% operating margin, a third consecutive year of margin improvement from 3.9% in 2022.
2
In Q2 2026 revenue reached KRW 16.325tn and operating profit KRW 975.2bn, the highest of the last five quarters, implying an operating margin of about 6.0%.
3
In the company's provisional Q2 2026 segment disclosure, 97.8% of operating profit came from the aftermarket unit while the module and core-parts margin was just 0.2%.
4
First-half 2026 non-captive orders were USD 740mn, far below the announced full-year target of USD 11.84bn, a gap investors need to monitor.
5
Portfolio restructuring is under way, including the lamp business sale (MOU with OPmobility) and a review of the bumper business, with proceeds earmarked for electrification, SDV and robotics.

Business structure

Hyundai Mobis operates in two broad areas: modules and core parts (electrification, parts manufacturing, module assembly) and aftermarket parts distribution.

In the provisional Q2 2026 results released on 24 July 2026, aftermarket revenue was KRW 3.430tn and module/core-parts revenue was KRW 12.894tn, showing that most sales come from modules and core parts while the aftermarket generates the profit.

The company has explained that in 2025 margin improvement was led by the aftermarket business, while the module and core-parts business, comprising electrification, parts manufacturing and module assembly, supported growth through higher sales and a swing back to an operating profit.

The customer base is centred on Hyundai Motor and Kia, but non-captive expansion is the strategic core: at its 2024 CEO Investor Day the company said it had won overseas brands including Volkswagen, Stellantis, BYD and Mahindra as customers, with parts-manufacturing orders rising from USD 1.8bn in 2020 to about USD 9.2bn in 2024.

In Europe, the Kecskemet module plant in Hungary began operating in March 2026 to supply chassis modules for Mercedes-Benz electrified models, and a new battery system (BSA) plant was built in Navarra, Spain for Volkswagen electric vehicles.

Product pillars are electrification components such as battery systems and PE systems, electronics including integrated controllers and infotainment, and chassis/safety products such as electronic braking and steering.

Restructuring is running in parallel: in January 2026 the company signed an MOU with France-based OPmobility for a transaction covering its lamp business, and reports also point to a review of the bumper business sale, the sale of a Gyeongju logistics centre, and discussions on selling Ohio battery-system facilities to customer Stellantis.

One analysis noted that parts businesses such as lamps and bumpers accounted for roughly 23.3% (KRW 14.213tn) of 2025 total revenue of KRW 61.118tn, so the scale of the reshuffle is not trivial.

Competition centres on non-captive order contests with global mega-suppliers such as Bosch, Denso, Continental and Magna, with a newer axis in mass supply of actuators for Boston Dynamics humanoid robots and an SDV/ADAS partnership with Qualcomm.

Earnings trend

Quarterly revenue · Operating profit

₩15.9T₩870B25Q2₩15T₩780.3B25Q3₩15.4T₩930.5B25Q4₩15.6T₩802.6B26Q1₩16.3T₩975.2B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩51.9T₩2T2022₩59.3T₩2.3T2023₩57.2T₩3.1T2024₩61.1T₩3.4T2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩15.9T	₩870B	5.5%
2025Q3	₩15T	₩780.3B	5.2%
2025Q4	₩15.4T	₩930.5B	6.0%
2026Q1	₩15.6T	₩802.6B	5.2%
2026Q2	₩16.3T	₩975.2B	6.0%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩51.9T	₩2T	₩2.5T	3.9%	6.6%	46.5%
2023	₩59.3T	₩2.3T	₩3.4T	3.9%	8.4%	44.1%
2024	₩57.2T	₩3.1T	₩4.1T	5.4%	8.8%	44.4%
2025	₩61.1T	₩3.4T	₩3.7T	5.5%	7.4%	43.1%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

On confirmed figures, revenue rose from KRW 51.906tn in 2022 to KRW 59.254tn in 2023, KRW 57.237tn in 2024 and KRW 61.118tn in 2025, while operating profit expanded from KRW 2.027tn to KRW 3.358tn over the same span.

The operating margin climbed from 3.9% in 2022 and 2023 to 5.4% in 2024 and 5.5% in 2025, a second straight year of improvement.

Net profit attributable to owners, however, fell from KRW 4.056tn in 2024 to KRW 3.656tn in 2025; a lower bottom line in a year of higher operating profit appears to reflect a smaller contribution from non-operating items such as equity-method gains and currency effects.

Quarterly, Q3 2025 was the trough of the last five quarters at KRW 15.032tn in revenue and KRW 780.3bn in operating profit, followed by KRW 15.398tn/KRW 930.5bn in Q4 2025 and KRW 15.561tn/KRW 802.6bn in Q1 2026, before Q2 2026 set the high at KRW 16.325tn and KRW 975.2bn.

The Q2 2026 operating margin works out to about 6.0%, and net profit attributable to owners exceeded KRW 1tn at KRW 1.059tn. First-half 2026 totals were KRW 31.885tn in revenue and KRW 1.778tn in operating profit.

The profit mix is heavily skewed: in the provisional Q2 2026 segment disclosure, aftermarket operating profit was KRW 953.4bn, or 97.8% of total operating profit, at a 27.8% segment margin, while modules and core parts earned only KRW 21.8bn at a 0.2% margin (provisional, disclosed 24 July 2026).

Drivers cited by the company and media include regional price increases and favourable currencies (euro up 9.8%, dollar up 7.0%), a 12.7% rise in European aftermarket sales and a one-off tariff refund, while on the other side electrification revenue dipped slightly on lower output at some customers and memory-semiconductor cost pressure persisted.

The balance sheet showed a 43.1% debt-to-equity ratio at end-2025 with operating cash flow of KRW 4.473tn, meaning heavy R&D spending is funded internally.

Industry analysis

The end market is in a phase where mix, not volume, drives profit. At largest customer Hyundai Motor, Q2 2026 wholesale sales fell 6.9% year on year to 991,885 units, yet electrified vehicle sales rose 1.7% to 266,627 units, with hybrids hitting a record quarterly high and record share.

For a supplier, that means demand for hybrid and power-conversion components is filling the volume gap rather than pure battery-electric growth.

Tariffs remain an industry constant: reports note a 15% tariff on Korean vehicles and parts, with Hyundai Motor and Kia incurring roughly KRW 7.2tn of US tariff costs last year, and research argues the parts industry faces not only direct tariff costs but the indirect effect of automakers pushing for lower unit prices.

The same research also expects rising vehicle prices and longer vehicle lifespans to lift aftermarket parts demand, a shift aligned with where Hyundai Mobis earns its profit.

Its relative position within Korea's supplier base is comparatively solid: industry association data showed the top 100 listed Korean auto-parts makers excluding Hyundai Mobis posted combined Q3 2025 operating profit of KRW 2.817tn, down 6.6% year on year, and parts exports to the US fell 6.7% to USD 7.666bn as automakers localised sourcing, the first decline since 2020.

Globally the company is still a challenger competing with Bosch, Denso and peers for non-captive awards, with stated goals of lifting non-Hyundai/Kia global OEM share to 40% by 2033 and reaching a 10% global chassis and safety market share by 2030.

Outlook

The company's disclosed medium-term targets are average annual revenue growth of at least 8% through 2027 and an operating margin of 5-6%; the confirmed 2025 margin of 5.5% sits inside that band. Orders are the item requiring verification.

Non-captive orders reached USD 9.17bn in 2025, far above the initial USD 7.45bn target, and the 2026 target was set at USD 11.84bn (about KRW 17.1tn).

Yet first-half 2026 orders came to only USD 740mn, with the company citing customer strategy changes that shifted project timing and slower electrification market growth, while pledging to raise order quality through first-time wins with new products and new customers.

Investment plans are intact: the 2026 R&D budget of KRW 2.163tn is the first above KRW 2tn, and KRW 950.8bn, or 44% of plan, was spent in the first half.

On product timing, the company has said its in-house PE system designs for applications including extended-range electric vehicles are moving through validation with mass production targeted for end-2026.

In restructuring, the lamp divestment is the swing factor: a labour agreement was approved by union ballot in May 2026 on terms including 100% employment transfer, and a three-way agreement with the buyer and the union is to precede the final sale agreement.

On shareholder returns, the company has laid out a total shareholder return target of at least 30% through 2027, a 50% increase in the interim dividend, and cancellation of all treasury shares bought in 2025 plus 700,000 previously held treasury shares.

Robotics is the earliest-arriving new pillar, as at CES 2026 the company agreed to mass-supply actuators for the Boston Dynamics humanoid Atlas and plans to extend motor and control know-how from vehicle electrification into robot components.

Valuation

PER

10.3×

PBR

0.7×

ROE

7.4%

EPS

₩40,794

BPS

₩579,911

Dividend per share

₩6,500

The earnings trajectory itself points upward. Across the most recent four quarters, operating profit recovered from the Q3 2025 trough through Q2 2026, and on an annual basis the operating margin has moved from 3.9% in 2022 to the mid-5% range.

The shares trade at a multiple below net asset value per share, that is, at a discount to book equity, which is not unusual within the auto-parts sector.

On dividends, a February 2026 comparison placed the yield below that of other listed affiliates in the group, reflecting the fact that Hyundai Motor and Kia target a 35% total payout ratio versus 30% at Hyundai Mobis, whose dividend payout ratio of about 16% is topped up with share buybacks and cancellations.

Because the earnings multiple blends a stable, high-margin aftermarket business with a module and core-parts business earning well under 1%, interpretations diverge sharply depending on which segment assumption is used.

As reference only, DS Investment & Securities raised its target price from KRW 600,000 to KRW 800,000 in a report dated 8 July 2026, and Samsung Securities presented a target price of KRW 650,000 in a report dated 11 May 2026; these are those brokerages' views, not KOSAI's.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

High-margin cash generation from the aftermarket

In the provisional Q2 2026 results, the aftermarket unit posted KRW 3.430tn in revenue, KRW 953.4bn in operating profit and a 27.8% margin.

Even when new-vehicle sales fall, parts demand is relatively defensive as long as the vehicle fleet holds, and industry research points to rising vehicle prices and longer vehicle lifespans lifting aftermarket parts demand.

Operating cash flow of KRW 4.473tn in 2025 and a 43.1% debt-to-equity ratio show how that cash generation translates into balance-sheet strength.

Non-captive order base and expanding European footprint

Non-captive orders reached USD 9.17bn in 2025, well above the USD 7.45bn initial target. In Europe the company has built out customer-adjacent capacity through the Kecskemet module plant in Hungary, a new battery-system plant in Navarra, Spain and PE system production in Slovakia.

It was reported that Yuanta Securities calculated USD 8.8bn of the USD 9.2bn in 2025 non-captive orders came from North America, with USD 5.8bn of a USD 9.0bn 2026 goal also North America-bound (as of January 2026).

Portfolio reshaping and the shareholder-return framework

The company signed an MOU to transfer its lamp business to OPmobility and plans to redirect the freed-up resources into higher-value areas such as electrification, autonomous-driving sensors and ADAS.

Because of financial headroom, a 43.1% debt-to-equity ratio in 2025 and net debt of negative KRW 1.254tn, analysts have read the divestments as portfolio choice rather than balance-sheet repair.

Running alongside is a total shareholder return target of at least 30% through 2027 together with treasury-share cancellation plans.

Bear factors

Sub-1% margin in modules and core parts

In the provisional Q2 2026 figures, modules and core parts generated KRW 12.894tn of revenue but only KRW 21.8bn of operating profit, a 0.2% margin and down 48.2% from KRW 42.0bn a year earlier.

The segment that supplies most of the revenue is therefore close to break-even, underscored by the fact that the aftermarket accounted for 97.8% of total operating profit. Unless segment margins rise with electrification volumes, group-level margin gains may stay limited.

The gap between order targets and actual awards

The 2026 non-captive order target is USD 11.84bn, yet first-half awards totalled USD 740mn. The company attributed this to project timing shifts from customer strategy changes and slower electrification market growth.

Since orders typically convert into revenue years later, whether the annual goal is met can move the medium-term revenue assumption itself.

Reliance on currency and one-offs amid cost pressure

The Q2 2026 aftermarket margin gain reflected a combination of price increases, a 9.8% rise in the euro and 7.0% in the dollar, and a one-off tariff refund. Currency and one-off items cut the other way when they reverse.

At the same time the company noted continued memory-semiconductor cost pressure, and customer Hyundai Motor cited raw-material price increases and output disruption from a supplier fire as profit headwinds.

Risk factors

Trade and tariff policy

With a 15% tariff applied to Korean vehicles and parts, policy volatility has persisted: in February 2026 the US president said reciprocal tariffs would rise from 15% to 25%, citing delays in Korea's special act on US investment.

Suppliers are exposed not only to direct tariff costs but also indirectly to automakers' pressure for lower unit prices. Changes in tariff rates and origin rules can alter the economics of North American localisation plans.

Restructuring execution and labour

The lamp divestment was brought to a close by a union ballot after a full strike, but issues such as the size and method of severance-style compensation remain open and a three-way agreement is scheduled before the final sale contract.

Media also reported the possibility of similar labour friction as a bumper-business sale is pursued, and the metal workers' union's plan to mount a joint response to the restructuring. Until terms and timing are fixed, sale proceeds and profit-and-loss effects cannot be treated as confirmed figures.

Customer concentration and electrification demand swings

A large share of revenue is tied to Hyundai Motor and Kia, so changes in their production plans feed through immediately. Hyundai Motor's Q2 2026 wholesale sales fell 6.9%, with domestic volumes down 16.4% on supply disruption from a supplier fire.

The company itself noted a slight decline in electrification revenue on lower output at some customers and delayed orders amid slower electrification market growth. New businesses such as robotics and SDV have no disclosed revenue contribution yet, so they cannot be assumed to cushion earnings.

What to watch next

Late October 2026
Q3 results (Investing.com lists 23 October 2026 as the next earnings date). The key items are whether the module and core-parts margin moves off the roughly 0.2% Q2 level and whether the aftermarket margin holds once currency tailwinds and the one-off tariff refund drop out.
Q4 2026
Whether the final lamp-business sale agreement is signed, along with deal size and structure, and progress on the three-way agreement with the buyer and the union. Also worth tracking is whether the bumper-business review advances to a formal contract.
December 2026
Whether PE system mass production starts as the company targeted for end-2026, and the start-up and utilisation of the Navarra battery-system plant in Spain. These provide the first evidence on whether the electrification cost structure is improving.
January-February 2027
How close final 2026 non-captive orders came to the USD 11.84bn target, plus year-end disclosures confirming execution of the cancellation of all 2025 treasury-share purchases and the 30%-plus total shareholder return goal.
First half of 2027
The schedule and volumes for mass-supplying actuators for the Boston Dynamics Atlas, and whether SDV/ADAS products developed with Qualcomm convert into actual orders. The watch point is whether robotics moves from qualitative expectation to disclosable revenue.

Overall view

Hyundai Mobis posted record-level scale and profit in 2025, with revenue of KRW 61.118tn and operating profit of KRW 3.358tn, lifting the operating margin from 3.9% in 2022 to 5.5%.

Quarterly profit also recovered from a KRW 780.3bn trough in Q3 2025 to KRW 975.2bn in Q2 2026, when net profit attributable to owners was KRW 1.059tn.

Still, the provisional Q2 2026 segment disclosure showed 97.8% of operating profit coming from the aftermarket and a 0.2% margin in modules and core parts, so the dependence of earnings power on a single segment remains unchanged.

The bull case rests on high-margin aftermarket cash generation, a non-captive order base centred on North America and Europe, portfolio reshaping such as the lamp divestment, and the total shareholder return target.

The bear case rests on first-half non-captive orders of just USD 740mn against a far larger annual goal, margin gains leaning on currency and a one-off tariff refund, and cost pressure from items such as memory semiconductors alongside tariff policy volatility.

The shares trade at a multiple below book value, but because that multiple blends aftermarket stability with thin module and core-parts margins, interpretations vary widely.

The next verification points are therefore segment margins in the late-October Q3 results, the final lamp transaction contract, and the annual order achievement rate; this report is for information purposes and contains no buy or sell recommendation.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.