Q4 2025 Kia Corp Earnings Call Transcript
Key Points
- Kia Corp (XKRX:000270) achieved a 1.6% year-over-year growth in global retail sales, driven by strong performance in the U.S. and India.
- Electrified vehicle sales increased by 13.2% year-over-year, with a significant rise in HEV sales in the U.S. and EV sales in Western Europe.
- Kia's market share in the U.S. HEV segment nearly doubled, expanding from 4.2% in 2024 to 8.2% in Q4 2025.
- Revenue rose by 3.5% year-over-year to KRW28.088 trillion, supported by higher average selling prices and favorable foreign exchange effects.
- Kia plans to increase wholesale sales by 6.8% in 2026, with a focus on expanding HEV and SUV sales in the U.S. and strengthening EV leadership in Europe.
- Operating profit decreased by 32.2% year-over-year to KRW1.843 trillion, impacted by U.S. tariffs and increased incentives in overseas markets.
- Domestic sales dropped by 5.9% year-over-year due to deferred demand and the extension of individual consumption tax cuts.
- Sales volume in Europe declined by 10.2% year-over-year, affected by the discontinuation of the Ceed and production adjustments.
- The cost of sales ratio increased by 2.9 percentage points year-over-year to 81.7%, primarily due to the impact of U.S. tariffs.
- Net profit fell by 15.5% year-over-year to KRW1.471 trillion, reflecting challenges in maintaining profitability amid competitive pressures.
Hello. This is Seong-guk Jeong, Head of Investor Relations at Kia. I will begin with business results for the fourth quarter of fiscal year 2025.
I'll commence with the sales summary, followed by the consolidated income statement, revenue and earnings analysis, the consolidated balance sheet and finally, Kia's business plan for 2026.
First, we will begin with the global retail sales performance. In Q4 2025, global industry demand declined by 1.6% year-on-year due to mounting pressure on consumer purchasing power in the U.S. market following the expiration of IRA subsidies at the end of September and rising vehicle prices and budget constraints on the trade-in policy in certain local regions in China.
Kia's global retail sales witnessed a 1.6% growth year-over-year, led by higher sales centered around the Sportage HEV and Carnival HEV in the U.S. and increased sales led by the Sonet in India following the goods and services tax rate cut lifting our global market share by 0.1 percentage point to 3.3%. By market, domestic sales
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