Hyundai Rotem: revenue up 13.3%, but EBITDA and profit decline — margin under pressure

25 августа Hyundai Rotem раскрыла результаты за второй квартал 2026 года. Выручка выросла на 13,3% год к году, до 1 606,1 млрд вон, однако EBITDA снизилась на 7,0%, а чистая прибыль — на 2,8%. Маржинальность по EBITDA упала с 18,9% до 15,5%, что указывает на давление на рентабельность. При текущей цене акция выглядит скорее привлекательно: мультипликатор EV/EBITDA ниже собственного трёхлетнего среднего, а модель портала даёт потенциал роста около 7%.

Key takeaways

— Revenue in Q2 grew 13.3% YoY to KRW 1,606.1 bn, but EBITDA fell 7.0% — margin dropped to 15.5% from 18.9% a year earlier.

— Net profit declined 2.8% YoY to KRW 185.3 bn, with net margin narrowing from 13.4% to 11.5%.

— Operating cash flow in Q2 was minus KRW 611.6 bn — a notable deterioration from a positive flow a year earlier.

— Net debt is negative: minus KRW 2,370.8 bn, corresponding to a net debt/EBITDA ratio of -0.64 over the trailing twelve months.

— Trailing dividend yield is 0.48% — below historical levels, limiting appeal for income investors.

— Shares trade at P/E of 17.0 and EV/EBITDA of 10.7, below its own three-year average EV/EBITDA of 16.2 — valuation does not look stretched.

Attractiveness

Key figures, KRW bn

Revenue in Q2 grew 13.3% YoY to KRW 1,606.1 bn, but EBITDA fell 7.0% — margin dropped to 15.5% from 18.9% a year earlier.

In Q2 2026, Hyundai Rotem's revenue reached KRW 1,606.1 bn, up 13.3% from the same period last year. Growth has continued for several consecutive quarters: in Q1 2026 it was 23.9%, and in Q4 2025 — 12.8%. However, the pace is slowing compared to the peak levels of mid-2025.

EBITDA for the quarter amounted to KRW 248.8 bn, down 7.0% from a year earlier. EBITDA margin fell from 18.9% to 15.5%. This indicates that revenue growth is not accompanied by adequate operational efficiency — likely due to rising costs or a shift in sales mix.

Net profit declined 2.8% YoY to KRW 185.3 bn, with net margin narrowing from 13.4% to 11.5%.

Net profit in Q2 2026 was KRW 185.3 bn versus KRW 190.6 bn a year earlier. The 2.8% decline reflects pressure on operating margin, and possibly higher financial expenses or tax burden.

Net margin fell from 13.4% to 11.5%. This is the second consecutive quarter with the metric below 12%, whereas in mid-2025 it exceeded 13%.

Operating cash flow in Q2 was minus KRW 611.6 bn — a notable deterioration from a positive flow a year earlier.

In Q2 2026, Hyundai Rotem's operating cash flow turned negative — minus KRW 611.6 bn. A year earlier, the flow was positive at KRW 543.6 bn. Such volatility is typical for companies with large contracts and advance payments.

Over the trailing twelve months, operating cash flow was KRW 904.3 bn, exceeding net profit for the same period (KRW 807.6 bn). However, quarterly swings are significant: in Q1 2026, the flow was abnormally high at KRW 2,156.1 bn, likely due to receipts on major orders.

Net debt is negative: minus KRW 2,370.8 bn, corresponding to a net debt/EBITDA ratio of -0.64 over the trailing twelve months.

At the end of Q2 2026, the company's net debt was minus KRW 2,370.8 bn, meaning cash and equivalents significantly exceeded debt obligations. Compared to the previous reporting date, net debt decreased by KRW 178.9 bn, and over the last 12 months — by KRW 1,896.7 bn.

The net debt/EBITDA ratio over the trailing twelve months is -0.64. This indicates a net cash position, providing financial flexibility for investments and dividend payments.

Trailing dividend yield is 0.48% — below historical levels, limiting appeal for income investors.

Over the trailing twelve months, Hyundai Rotem paid dividends providing a yield of 0.48% at the current price. This is a low figure, especially compared to the key rate, making the share unattractive for income-focused investors.

Nevertheless, given the negative net debt and stable operating cash flow, the company has room to increase payouts in the future. However, the decision will depend on capital expenditure needs and growth investments.

Shares trade at P/E of 17.0 and EV/EBITDA of 10.7, below its own three-year average EV/EBITDA of 16.2 — valuation does not look stretched.

Current multiples for Hyundai Rotem: P/E 17.0 and EV/EBITDA 10.7. Its own three-year average EV/EBITDA is 16.2, meaning the shares trade at a discount to their historical valuation.

According to the portal's model, the upside potential of the share is about 7% from the current price. This moderate upside, combined with negative net debt and expectations of margin recovery, makes the share rather attractive.

Valuation on the latest reported figures

Bottom line

The strength of the report remains revenue growth of 13.3% and negative net debt, which provides a safety cushion. However, declining EBITDA and net profit indicate that operational efficiency is deteriorating, and margins are under pressure. One-off factors, such as the abnormally high operating flow in Q1, should not mislead: quarterly dynamics are highly uneven. At the current valuation (EV/EBITDA 10.7 vs. average 16.2), the share looks rather attractive, but confirming this view requires margin stabilization in the coming quarters.