KG Mobility Q2 2025 Earnings: Back to Red, What’s Next?

1. KG Mobility Q2 Earnings: What Happened?

KG Mobility reported revenue of KRW 986.4 billion, operating profit of KRW 8 billion, and a net loss of KRW 7.7 billion for Q2 2025. This marks a return to red after achieving profitability in Q1.

2. Why the Disappointing Results?

While revenue saw a slight year-on-year increase, rising costs and increased sales and administrative expenses limited operating profit growth. Financial expenses contributed significantly to the net loss. Macroeconomic uncertainties (high interest rates, fluctuating exchange rates, and volatile raw material prices), coupled with intense market competition, also played a role.

3. KG Mobility: The Good & The Bad

• The Good: Expanding eco-friendly vehicle lineup, new car launches, growing overseas sales, and a strengthening SUV brand image.
• The Bad: Uncertainty surrounding profitability improvements, high debt ratio, fluctuating exchange rates and interest rates, volatile raw material prices, and fierce competition.

4. Investor Action Plan: What Now?

KG Mobility is striving for a turnaround, but faces significant challenges. Investors should closely monitor new car sales performance, competitiveness in the eco-friendly vehicle market, profitability improvement efforts, and financial health. Our current investment recommendation is ‘Neutral’. It’s advisable to observe future earnings and market conditions before making investment decisions.