By Kwanwoo Jun
Hyundai Motor posted weaker first-quarter earnings amid sluggish global vehicle sales, as U.S. tariffs, though reduced, continued to weigh on the South Korean auto giant.
The tariff hit to the carmaker's profit eased but remained significant in the first three months of 2026 following the trade deal Seoul reached with Washington that lowered duties on most Korean exports to 15% from November.
Net profit fell 24% from a year earlier to 2.585 trillion won, equivalent to $1.75 billion, for the January-March period, the company said Thursday. The decline slowed from the 52% plunge in the previous quarter. Hyundai executives said on an earnings call that the tariffs cost the company roughly 860 billion won in the quarter.
Revenue rose 3.4% to 45.939 trillion won, while operating profit dropped 31% to 2.515 trillion won.
Analysts had expected net profit of 2.480 trillion won on revenue of 45.866 trillion won in the first quarter, according to FactSet.
Global vehicle sales fell 2.5% during the period, reflecting challenging market conditions amid slowing global demand and intensifying competition. The U.S. and Indian markets bucked the trend, with sales rising 0.3% and 8.5%, respectively.
Higher oil prices amid Middle East tensions led to increased demand for hybrid-electric cars--alongside sport-utility vehicles--in the U.S., Hyundai said.
The company had earlier flagged a tough business environment ahead, projecting a similar earnings hit this year after U.S. tariffs cost the company an estimated 4.1 trillion won in 2025.
Despite the downbeat earnings outlook, shares in the automaker have climbed about 80% this year. Analysts say the company's push into artificial intelligence and robotics has helped drive the stock higher.
Write to Kwanwoo Jun at kwanwoo.jun@wsj.com
(END) Dow Jones Newswires
04-23-26 0203ET
