The Hyundai Rotem said its full-year operating profit rose 120.3% year on year to $697 million, marking the highest level since its establishment.The Hyundai Rotem said its full-year operating profit rose 120.3% year on year to $697 million, marking the highest level since its establishment. Revenue climbed 33.4% to $4.07 billion, while net profit surged 90.1% to $538 million, according to a regulatory filing.

This represents the first time Hyundai Rotem has exceeded the symbolic $700 million operating profit threshold, underscoring its rapid earnings expansion amid heightened global demand for military hardware and large-scale rail infrastructure.

Operating profit for the fourth quarter increased 65.4% from a year earlier to $186 million, while quarterly revenue reached $1.13 billion. Net profit for the quarter stood at $157 million, reflecting continued margin improvement. The company attributed the strong results to rising domestic and export orders across its core divisions.

Hyundai Rotem said its rail business played a central role, benefiting from: Increased production volumes for domestic high-speed rail projects, Uzbekistan high-speed rail manufacturing, Australia’s QTMP electric multiple-unit rail project. Rail-related orders reached a record $4.18 billion, the highest annual level in the company’s history.

Hyundai Rotem’s total order backlog stood at $20.7 billion at the end of the year, up 58.7% year on year, supported by major domestic and international contracts, including: Morocco double-deck commuter trains, Seoul’s Daejang–Hongdae Line

• GTX-B metropolitan rail line, Taichung metro project in Taiwan.
  
  

The defense and eco-plant segments also strengthened the backlog, bolstered by a second-phase export contract for K2 main battle tanks to Poland and an automated guided vehicle (AGV) supply deal for Busan Port.

Despite aggressive expansion, Hyundai Rotem maintained a stable financial profile. Its debt-to-equity ratio stood at 206%, or 58.5% excluding advance payments, while cash and cash equivalents approached $632 million, effectively sustaining a near debt-free operating structure, the company said.

“Maintaining a sound financial foundation remains a top priority as external uncertainties persist,” a company official said. “We aim to reinforce long-term growth while safeguarding management stability.”

K-DEFENSE NEWS | Strategic Analysis Desk

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