GMB Korea

Founded in 1979 in Changwon, GMB Korea is a mid-sized auto parts maker specializing in precision powertrain components.

Its business is organized into Green Energy, Engine, Transmission, Chassis, Bearing and Aftermarket parts, and according to a recently reported revenue mix, Green Energy parts account for the largest share at 24.83%, followed by Engine parts at 22.68%, Transmission parts at 20.20%, Chassis parts at 16.98% and Bearing parts at 1.38%.

Historically, transmission-related parts were the core revenue driver, followed by engine and chassis parts, though the weight of electrification-related products has been rising.

The Green Energy lineup includes Electric Water Pumps (EWP), coolant hubs, active purge pumps, electric oil pumps and Integrated Thermal Management modules (ITM), with the company describing its fuel-cell stack-cooling electric water pump as the world's first mass-produced unit with an embedded high-voltage controller.

Customers are centered on Hyundai/Kia and extend to GM, Renault and Stellantis among automakers, alongside global Tier-1 partners such as Hyundai Transys, Hyundai Wia, BorgWarner, Korea Movenex, Namyang Nexmo and Mando.

In the aftermarket segment, the company supplies water pumps, universal joints, tensioners and wheel bearings to more than 35 countries through a global distribution network.

Competitively, it operates alongside other domestic powertrain parts specialists, emphasizing ultra-precision machining capability that contributes to noise reduction, fuel efficiency and durability.

Subsidiaries include A-G Tech, GMB LP's, and a Qingdao-based Chinese unit, and the company has recently acquired a stake in a US Alabama entity to reinforce North American local sourcing.

Consolidated revenue rose for four consecutive years, from KRW 610.5bn in 2022 to KRW 690.9bn in 2023, KRW 726.7bn in 2024 and KRW 787.3bn in 2025.

Operating profit improved over the same period from KRW 11.1bn (1.8% margin) to KRW 20.6bn (3.0%), KRW 22.7bn (3.1%) and KRW 24.2bn (3.1%), moving out of the low-margin zone of 2022 and stabilizing around the 3% range.

Net income attributable to owners fluctuated year to year — KRW 11.8bn in 2022, KRW 11.5bn in 2023, KRW 15.4bn in 2024 and KRW 14.5bn in 2025 — but stayed at an improved level versus 2022-2023.

However, 2025 operating cash flow fell sharply to KRW 7.1bn from KRW 41.5bn in 2024, a signal that cash generation slowed notably relative to the scale of revenue and profit.

On a quarterly basis, revenue of KRW 200.0bn and operating profit of KRW 10.1bn (about 5.1% margin) in 2025Q2 gave way to a much thinner margin in 2025Q3, with revenue of KRW 204.1bn but operating profit of only KRW 4.4bn (about 2.2%), before recovering to KRW 203.5bn revenue and KRW 8.3bn operating profit (about 4.1%) in 2025Q4.

In 2026Q1, revenue of KRW 200.3bn came with operating profit of just KRW 3.6bn (about 1.8%), the lowest margin among the past five quarters, before rebounding again in 2026Q2 to KRW 215.8bn revenue and KRW 9.9bn operating profit (about 4.6%), with owners' net income reaching KRW 8.3bn, the highest of the recent quarters.

This wide quarter-to-quarter swing is presumably tied to raw material costs, foreign exchange movements and shifts in customer production volumes, and quarterly profitability management remains a point to watch separately from the gradual annual improvement trend.

The debt ratio has also climbed steadily, from 105.7% in 2022 to 126.8% in 2025, a capital-structure factor worth monitoring alongside earnings.

Domestic credit rating agencies rated the 2026 outlook for the auto parts sector as "deteriorating," citing the view that US tariff policy and the relocation of automaker production bases to the United States could widen revenue volatility for Korea-based parts suppliers.

Parts makers' sales are highly correlated with Hyundai Motor Group, which produces roughly 80% of domestic vehicles, and the group's acceleration of US localization in response to tariffs is flagged as a factor that could reduce domestic production over the medium to long term.

In particular, Hyundai Motor Group plans to raise its parts localization rate from 60% in 2025 to 80% by 2030, and analysts note that domestically based suppliers could face structural pressures including reduced US export volumes, intensified competition for new-model allocation, and downward pricing pressure.

That said, the same analyses note that first-tier vendors, which tend to expand overseas alongside OEMs, face relatively limited domestic impact, while suppliers with US production capacity could benefit from eased tariff burdens and expanded local sourcing.

On electrification, EV growth is expected to slow due to shifting US policy, the expiration of IRA tax credits, and intensified competition from expanding Chinese production, and Hyundai Motor Group's apparent move to convert its US Metaplant from EV-dedicated to a mixed hybrid production line suggests softer growth momentum for electrification-related parts businesses.

Meanwhile, brokerages note that the tariff rate easing from 25% to 15%, improved sales mix, and rising hybrid vehicle sales could help defend profitability across automakers and parts suppliers.

Overall, the powertrain and green-energy parts segment that GMB Korea operates in sits at the intersection of tariff policy, localization, and the pace of electrification.

In February 2026, GMB Korea signed an auto parts supply contract with Hyundai/Kia for North America (US/Mexico) plants worth KRW 404bn, equivalent to 55.6% of recent revenue, with the contract period disclosed as starting January 1, 2027.

Alongside this, the company also signed a separate supply contract for electric water pumps with Hyundai/Kia worth KRW 128.9bn, or 16.4% of recent revenue, covering Hyundai/Kia's domestic and overseas plants.

Earlier in 2026, the company decided to acquire an 80% stake (80,000 shares) in GMB USA ALABAMA INC for KRW 4.65bn in cash for the purpose of sourcing parts to Hyundai and US-based automakers, a move that reinforces its North American local production and sourcing setup.

These large contracts and the US subsidiary stake acquisition can be interpreted as a response aimed at maintaining its position in the supply chain amid Hyundai Motor Group's expanding North American localization strategy.

That said, the KRW 404bn contract's actual revenue contribution is structured to begin only from 2027 onward, so its near-term earnings impact is limited, making the contract start date and initial volume allocation important items to track.

In the Green Energy parts segment, disclosures of new orders for core electrification components such as electric water pumps and integrated thermal management modules have continued, suggesting the related parts portfolio keeps expanding even as automakers moderate the pace of electrification.

As no separate company revenue or profit guidance has been confirmed, the reasonable approach going forward is to track quarterly disclosures and changes in customer OEMs' production plans.