Hyundai AutoEver is forecast to achieve a quarterly record operating profit in Q2 2025, rebounding from first-quarter weakness, according to consensus estimates from seven major domestic securities firms compiled by Yonhap Infomax on July 9. The turnaround is attributed to delayed revenue recognition from Q1 projects and accelerating benefits from Hyundai Motor Group's manufacturing AI platform development. Analysts project Q2 consolidated revenue of 1.1998 trillion won, operating profit of 86.6 billion won, and net profit of 65.8 billion won—representing year-over-year increases of 15.14%, 6.41%, and 10.22% respectively. The company's Q1 operating profit had fallen to just 21.2 billion won due to vehicle software profitability decline and rising R&D costs, causing the operating margin to drop to 2.3%. Hyundai AutoEver serves as the IT service provider driving digital transformation across Hyundai Motor Group, positioning it to benefit from the group's planned 77.3 trillion won investment through 2030 and a separate 9 trillion won allocation for the Saemangeum AI data center.
Hyundai AutoEver Forecast to Post Record Q2 Operating Profit
The consensus forecast projects Hyundai AutoEver will record consolidated Q2 revenue of 1.1998 trillion won, operating profit of 86.6 billion won, and net profit of 65.8 billion won. If results match projections, the company will achieve its highest quarterly operating profit on record and return to the 80 billion won operating profit range for the first time in one year. Year-over-year comparisons show revenue growth of 15.14%, operating profit growth of 6.41%, and net profit growth of 10.22%.
Delayed Q1 Revenue and AI Platform Investments Drive Recovery
Analysts diagnosed that Hyundai AutoEver is rapidly recovering from Q1 results that fell short of market expectations. The company's Q1 operating profit reached only 21.2 billion won due to vehicle software profitability slowdown and increased R&D expenses. However, Q2 is expected to reflect substantial delayed settlement revenue from the information technology outsourcing (ITO) segment. Approximately 20 billion won in project revenue is anticipated to contribute to results, marking a return to normalized operations. The operating margin, which had retreated to 2.3% in Q1, is forecast to rise to the 7% range in Q2.
Experts highlighted the company's exclusive domain expertise in leading Hyundai Motor Group's digital transformation (DX) as a key strength. Contrary to concerns about AI agent proliferation, the company's process design capabilities for implementing AI in actual production environments are gaining recognition, interpreted as expanding its dominance in the software-defined factory (SDF) ecosystem. Structural revenue expansion is becoming visible as Hyundai Motor Group executes mid-to-long-term investments totaling 77.3 trillion won through 2030 based on Hyundai Motor standards, plus a separate 9 trillion won investment in facilities including the Saemangeum AI data center.
Analysts Project Long-Term Value Growth from Group AI Investments
Analysts assessed that Hyundai AutoEver's corporate value has significant potential to increase. Lee Hyun-wook, researcher at IBK Investment & Securities, stated, "This is a process of rebuilding the data and cloud operating systems across the group," adding, "If the SDV transition accelerates in earnest, vehicle SW platform revenue will also structurally increase."
DB Financial Investment commented, "As AI agents proliferate, production management systems will not disappear but rather evolve into core backend infrastructure utilized by AI," noting, "Rather than shrinking existing system integration (SI) projects, this will lead to expansion of AI-based new projects and outcome-centered contracts, which will act as factors improving profitability and corporate value over the mid-to-long term."
FAQ
What does the Q2 forecast show for Hyundai AutoEver?
Seven major securities firms project Hyundai AutoEver will post Q2 consolidated revenue of 1.1998 trillion won, operating profit of 86.6 billion won, and net profit of 65.8 billion won, representing year-over-year increases of 15.14%, 6.41%, and 10.22% respectively. If results match forecasts, the company will achieve a quarterly record operating profit.
Why did Hyundai AutoEver's Q1 performance fall short?
Q1 operating profit reached only 21.2 billion won, below market expectations, due to vehicle software profitability slowdown and increased R&D expenses. The operating margin dropped to 2.3% during the quarter.
How do Hyundai Motor Group's AI investments support Hyundai AutoEver's growth?
Hyundai Motor Group plans to execute 77.3 trillion won in mid-to-long-term investments through 2030, plus a separate 9 trillion won for the Saemangeum AI data center and related facilities. As the group's IT service provider driving digital transformation, Hyundai AutoEver is positioned to benefit from these structural investments in AI platform development and software-defined factory ecosystems.
