What Happened?

Hyundai Rotem announced its Q2 2025 earnings and key management plans on September 2, 2025. The company showed positive results in its core businesses: defense (K2 tank, wheeled armored vehicles), railway (GTX, high-speed rail), and eco-plant (hydrogen infrastructure, smart logistics).

Why the Positive Results?

The key drivers are strong fundamentals, secured growth engines, and a favorable market environment. Hyundai Rotem demonstrated financial strength with increased assets, decreased debt ratio, higher sales and operating profit, and record-high order backlog. Stable growth in defense and railway, coupled with the booming hydrogen economy, further strengthened its growth momentum.

So, What About the Stock Price?

While significant short-term volatility is not expected, the mid-to-long-term outlook is positive. The announcement of concrete business plans for future growth engines and overseas expansion strategies is expected to boost investor confidence. We maintain a ‘Buy’ or ‘Positive Outlook’ rating.

Action Plan for Investors

  • Review IR Materials: Carefully examine the details of overseas export contracts, hydrogen project pipelines, etc.
  • Consult Experts: Minimize risks by consulting with financial professionals before making investment decisions.
  • Maintain a Long-Term Perspective: Focus on the long-term growth potential rather than short-term fluctuations.