Seoul: Hyundai Mobis Co., South Korea's leading auto parts maker, announced a substantial decline in its fourth-quarter net profit, which fell 39.9 percent compared to the same period in the previous year. The company attributed this downturn to losses from equity investments in group affiliates and the impact of tariffs imposed by the United States on the sector.
According to Yonhap News Agency, Hyundai Mobis recorded a net profit of 768.1 billion won (US$536.4 million) for the three months ending in December, a sharp decline from the 1.28 trillion won reported in the same period of 2024. Despite an increase in sales, which rose 4.7 percent to 15.39 trillion won, the company's operating profit decreased by 5.6 percent, totaling 930.5 billion won.
The financial results fell short of market expectations, with analysts' average net profit estimate standing at 1.05 trillion won, as per a survey conducted by Yonhap Infomax, the financial data firm of Yonhap News Agency. A company official explained that the decrease in net income was primarily due to shareholding losses from affiliates under the Hyundai Motor Group and the adverse effects of tariffs on auto parts imposed by Washington.
For the full year of 2025, Hyundai Mobis reported a 9.7 percent drop in net profit, totaling 3.66 trillion won. However, the company's annual operating profit increased by 9.2 percent to 3.35 trillion won, with sales rising 6.8 percent to 61.11 trillion won. The growth in annual operating profit was driven by its manufacturing operations, particularly in module assembly and parts production.
Sales from the manufacturing segment rose 5.9 percent on-year to 47.8 trillion won, bolstered by the full-scale operation of electrification plants in North America and strong growth in high value-added core components, such as automotive electronics. Hyundai Mobis plans to continue investing in facilities to enhance its future mobility competitiveness, with research and development spending expected to exceed 2 trillion won for the first time this year.