Kia reports record quarterly revenue despite profit decline

Published 25/07/2025, 08:26
© Reuters.

Investing.com -- Kia Corporation on Friday announced record quarterly revenue of KRW 29.35 trillion in the second quarter of 2025, representing a 6.5% increase YoY, despite a 24.1% drop in operating profit to KRW 2.77 trillion.

The South Korean automaker achieved its highest-ever quarterly global sales of 814,888 vehicles, up 2.5% YoY, driven by strong hybrid model demand and new vehicle launches.

The company maintained a 9.4% operating profit margin, which it claims is the highest among major global automakers, though profits were pressured by higher incentives and global trade challenges.

"Robust sales of hybrid models in global markets, higher average selling price, and favorable exchange rates helped support our record revenue results," said a Kia executive. Net profit including non-controlling interest fell 23.3% YoY to KRW 2.27 trillion.

Electrified vehicle sales grew 14% to 185,000 units, now representing 23.4% of Kia’s global sales compared to 21.4% a year earlier. Hybrid models led this growth with a 23.9% increase to 111,000 units, while battery-electric vehicle sales rose 8.3% to 59,000 units.

Regional performance varied, with strong results in North America from the Carnival (NYSE:CCL) Hybrid MPV and K4 sedan. The new EV4 electric sedan and Tasman pickup boosted Korean sales, while the Syros SUV launch drove growth in India. European sales declined slightly due to industry-wide demand weakness.

Looking ahead, Kia plans to maintain sales momentum by expanding its hybrid lineup and completing its full electric vehicle range by 2026, including the upcoming EV4, EV5, and EV2 models.

The company will also enter new segments with vehicles like hybrid versions of the Telluride and Seltos SUVs.

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