On the Dash:
- Hyundai and Kia posted higher Q3 operating profit, but Hyundai cut targets and Kia missed estimates.
- Strikes hurt Hyundai’s production, and war-linked costs cut about $450 million from Kia’s operating profit.
- Hybrid demand is driving U.S. growth at both brands, so dealers should review hybrid allocation.
Hyundai Motor and Kia both posted higher third-quarter operating profit, but Hyundai cut its 2026 targets, and Kia missed analyst estimates, according to the companies’ results. Strikes in South Korea cut into Hyundai’s production, The Wall Street Journal reported, while war-linked costs hit Kia’s earnings, Bloomberg reported.
Both automakers also had strong U.S. results, with Hyundai posting its best third quarter ever and Kia reaching a record quarterly market share.
Hyundai trims its 2026 targetsÂ
According to the company’s earnings release, Hyundai’s third-quarter operating profit rose 5.5% to 2.68 trillion won, while revenue fell 3.4% to 45.11 trillion won. Additionally, it reported that global wholesale volume fell 11.3% to 920,710 vehicles because of production constraints and fewer working days. Net profit dropped 24.2% to 1.93 trillion won ($1.44 billion), Hyundai said on its earnings call.
The automaker lowered its 2026 wholesale target to 4.0 million vehicles from 4.16 million, and its operating margin target to 5.5% – 6.5% from 6.3% – 7.3%. Union strikes intermittently disrupted production at Korean plants earlier this year before a settlement in late August, the newspaper reported. In the U.S., Hyundai sold 246,896 vehicles, its best third quarter ever, and North American hybrid sales grew 56% over the first nine months of the year, according to the sales release.
Kia misses estimates
Kia’s third-quarter operating profit rose 24.3% to 1.82 trillion won, but the figure fell short of the roughly 2.41 trillion won that securities firms had forecast. According to the automaker’s release, revenue rose 10.1% to 31.6 trillion won, and a lower U.S. tariff on Korean vehicles of 15%, down from 25%, helped lift profit.
Higher costs tied to the war in the Middle East cut about 600 billion won ($450 million) from operating profit, Bloomberg reported. The company expects higher logistics costs to persist into the fourth quarter, Chief Financial Officer Seung-Jun Kim said on the company’s earnings call. Additionally, Kia’s U.S. hybrid sales rose 118% to 69,000 vehicles, and its U.S. market share reached a record 5.8% for a quarter.
Hybrid demand & manufacturer costs
According to the companies’ third-quarter results, hybrid demand is driving U.S. growth at both brands and dealers selling Hyundai and Kia models may want to review hybrid allocation and stocking plans with their regional representatives. Second, manufacturer cost pressure is a key watch item as Kia expects higher logistics costs to continue and plans to keep incentives high. Meanwhile, Hyundai cut its full-year targets.
