Hyundai WIA (011210.KS) Q1 2026: Net Profit Slumps 65% on ₩60.1B Russia Base Effect
Defense drives 39% of group operating profit at a 10.8% margin while a non-recurring Russian gain disappears and the effective tax rate normalizes from 2.0% to 33.2%.
Source: Q1 2026 Interim Report — Filed April 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions
Hyundai WIA posted consolidated revenue of ₩2.179 trillion in Q1 2026, up 5.7% year-on-year, yet net profit collapsed 65.3% to ₩35.4 billion — a divergence that reveals how dependent prior-year earnings were on a single non-recurring item. The ₩60.1 billion non-operating gain tied to its Russian subsidiary recorded in Q1 2025 did not repeat, and the effective income tax rate reverted from an anomalously low 2.0% to a normalized 33.2%, together accounting for nearly the entire ₩66.6 billion decline in net income. Beneath that headline disappointment, a structural shift in earnings quality is underway: the "Other" segment — encompassing Mobility Solutions and defense — represents only 8.5% of group revenue yet contributed 39% of total operating profit in the quarter. The defense order backlog reached ₩1.429 trillion, with ₩306.6 billion in new orders booked in a single quarter, signaling that Hyundai WIA is entering a sustained K-defense upcycle that could meaningfully reshape its margin profile over the next two years.
