Dive Brief:
- Kia Corp. reported a 6.2% year over year jump in net revenue in FY2025 to $80.3 billion, the automaker announced in its earnings report on Jan 28.
- The jump in net revenue followed a 1.5% YoY increase in global vehicle sales to 3.16 million units, which was the highest in company history.
- Despite selling over 3 million vehicles last year, Kia reported a 22.8% year over year decline in net profit ($1.87 billion when adjusting for exchange rates). The automaker cited the impact of tariffs, as well as higher incentives to help boost its market share and maintain its positive sales momentum.
Dive Insight:
Kia’s operating profit in FY2025 fell from $9.3 billion in 2024 to $6.4 billion, while its margin fell from 11.8% to 8% YoY.
For the final quarter of 2025, Kia reported revenue of $19.76 billion, an increase of 3.5% compared to the same period in 2024. The automaker said the growth in Q4 was supported by a higher average selling price and more favorable exchange rates, despite a modest 1% decline in vehicle sales during the quarter.
Kia’s biggest global market in 2025 was North America, accounting for 44.6% of its total vehicle sales volume last year. In the U.S. market, sales increased 7% YoY to 852,155 vehicles. It was the third consecutive year of sales growth and the first time the automaker exceeded sales of 800,000 vehicles in the U.S. in a single calendar year.
Among Kia’s top-selling models in the U.S. in 2025 were the Sportage, K4 sedan and Telluride SUV. Sales of the Sportage were up 12.9% YoY to 182,823 units. It was the all-time best sales performance of any Kia model in a single year. Kia’s Carnival minivan also sold well in the U.S., with sales up 44.6% YoY to 71,917 units.
For its 2026 outlook, Kia plans to continue its growth strategy and boost profits by expanding sales of electrified models in major markets, including North America, Europe and India.
Hybrid vehicles, excluding plug-in hybrids, accounted for 19% of Kia’s total U.S. sales volume in Q4, indicating strong consumer demand for these more fuel-efficient models.
