Hyundai beat profit expectations but cut its annual sales target

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Hyundai Motor lowered its 2026 wholesale target to 4 million vehicles from 4.16 million and cut investment to 16 trillion won

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Hyundai Motor lowered its 2026 sales and investment targets after reporting a 5.5% rise in third-quarter operating profit on Thursday. The automaker now aims to wholesale 4 million vehicles for the year instead of the 4.16 million it had planned, while trimming its automotive investment budget from 17.8 trillion won to 16 trillion won, the company said.

Hyundai lowered its consolidated operating profit margin target to a range of 5.5% to 6.5% from 6.3% to 7.3%. It cited higher fixed costs from lower production volume and rising raw material prices. The revenue growth target of 1% to 2% is unchanged.

The company said the revisions reflect weaker global industry demand, production disruptions and higher raw material prices. It said the changes do not signal a deterioration in its underlying competitiveness or earnings capability.

Operating profit reached 2.68 trillion won, and the margin rose 0.5 percentage point to 5.9%. Hyundai credited favorable exchange rates, cost optimization and a better product mix driven by hybrid sales. Revenue fell 3.4% to 45.11 trillion won, and net profit dropped 24.2% to 1.93 trillion won.

The operating profit topped analyst estimates of 2.61 trillion won, according to Bloomberg. A forecast from LSEG SmartEstimate stood at 2.4 trillion won, according to Reuters.

Global wholesale volume fell 11.3% to 920,710 units as holidays reduced working days and strikes limited production. Sales in Korea dropped 27.2% to 131,468 units, and sales outside Korea fell 8% to 789,242 units. Hyundai kept a U.S. market share in the 6% range for a sixth straight quarter.

Hybrid sales rose 3.8% to 167,414 units, while electric vehicle sales fell 9.2% to 69,117 units. Electrified vehicles made up 26.7% of global sales, up 2.4 percentage points from a year earlier.

Sales in China were cut in half over the quarter, while Europe saw an 18% decline, according to Bloomberg. Hyundai projects a hit of roughly 4 trillion won from U.S. tariffs over the course of the year, according to Bloomberg.

Hyundai stock climbed over 4% in Seoul once the results came out, then gave back part of that advance.

The company said it plans to raise production, expand sales of new models including the Tucson and Elantra, and keep improving its cost structure. It held its quarterly dividend at 2,500 won per common share.

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