The automaker said it plans to expand sales in major markets including the United States, Europe and India and step up cost-cutting to restore operating profit to 10 trillion won this year.
In a regulatory filing on Tuesday, Kia reported 114.1409 trillion won in revenue last year and 9.0781 trillion won in operating profit. Revenue rose 6.2% from a year earlier, while operating profit fell 28.3%.
On an earnings conference call, Kia said U.S. tariffs cut operating profit by 1.022 trillion won in the fourth quarter. For the full year, the impact totaled about 3.093 trillion won.
Kia forecast this year’s tariff burden at 3.3 trillion won to 3.5 trillion won, higher than last year. Although South Korea and the United States agreed to cut the tariff rate to 15% from 25%, Kia said it effectively began paying the tariff in May last year, while it expects to bear the impact for the full year in 2026.
Even with uncertainty from U.S. tariffs and rising incentives amid tougher competition, Kia said it will pursue growth by expanding sales of hybrids and electric vehicles.
Kim Seung-jun, executive vice president and head of Kia’s finance division, said the company views the third quarter of last year as its low point and said it saw a partial turnaround in the fourth quarter.
He said the 15% tariff rate took effect Nov. 1, but “purely” applying the 15% rate did not happen until late November because of inventory at its U.S. sales unit. He said Kia expects improved results starting in the first quarter.
For 2026, Kia projected sales of 3.35 million vehicles, revenue of 122.3 trillion won, operating profit of 10.2 trillion won and an operating margin of 8.3%. The company said wholesale volume would rise 6.8% from last year and revenue would increase 7.2%.
In the United States, Kia plans to drive growth centered on SUVs and hybrids, citing the Telluride, a new Seltos and additional hybrid models. In Europe, it plans to launch the EV2 early this year and complete a mass-market EV lineup spanning the EV3, EV4 and EV5 to strengthen its EV leadership. In India, it plans to target premium SUV buyers with launches including a new Seltos to bolster its market position.
In Europe, Kia set a sales target of 594,000 vehicles, up 11.1% from a year earlier, despite intensifying competition from Chinese and European companies. Kia said that in the fourth quarter, EV sales in Europe surpassed gasoline vehicles for the first time. It said the 11% growth target reflects its expanded EV lineup launched since the second half of last year and higher incentives. Kia said incentives in Europe rose about 10% last year and are expected to increase by a similar pace this year.
In the United States, Kia set a target of 892,000 vehicles, up 5% from a year earlier, saying internal combustion engine vehicles and hybrids are replacing EVs as EV subsidies end and environmental regulations ease. It said it plans to increase output of ICE and hybrid models.
* This article has been translated by AI.
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