# Hyundai Rotem Q3 Profit Down 10% Despite Defense Margin Recovery

> Hyundai Rotem's Q3 profit fell 10% as defense margin rebounds, but order gap stalls growth.
- Title: Hyundai Rotem Q3 Profit Down 10% Despite Defense Margin…
- Summary: Hyundai Rotem's Q3 profit fell 10% as defense margin rebounds, but order gap stalls growth. Hyundai Rotem reported Q3 operating profit of 247.1 billion won…
- Keywords: hyundai rotem, operating profit, defense margin, order gap, hyundai wia, romania, peru, iraq, k2 tanks, poland, finance, Hyundai
- Source: BigGo Finance — https://finance.biggo.com/news/b7e0ebd6-c6cf-4688-87ab-53ae1cc9243c
- Author: BigGo Finance
- Published: 2026-10-19T07:25:50+00:00
- Read time: 1 min
- Topics: hyundai rotem, q3, operating profit, defense margin, order gap, hyundai wia, romania, peru, iraq, k2 tanks, poland, finance
## Hyundai Rotem Q3 Results
Hyundai Rotem reported third-quarter revenue of 1.6207 trillion won (approximately $1.2 billion) and operating profit of 247.1 billion won (approximately $186.3 million).
## Profit Misses Market Expectations
Operating profit fell 11.0% from a year earlier, missing the market consensus by 10.5%.
## Key Causes of Profit Drop
A weaker dollar-won exchange rate and the absence of large export orders following the second Poland K2 tank contract were cited as the main causes.
## Defense Margin Rebound
The defense division's operating margin rebounded to 28.1% after two quarters of decline.
## Order Backlog Status
The order backlog held at 29.142 trillion won (approximately $22.0 billion).
## Acquisition Plan
Hyundai Rotem plans to acquire Hyundai Wia's special-purpose machinery division for 358.4 billion won (approximately $270.2 million).
## Export Order Gap
Defense new orders so far this year total 344.5 billion won (approximately $259.7 million), effectively stalled compared with 9.1391 trillion won (approximately $6.9 billion) in the same period last year.
## Next Contract Focus
Hyundai Rotem is in export negotiations with Romania, Peru and Iraq, but the timing is hard to pin down.
## Market Reaction
Hyundai Rotem shares plunged 37% over the past three months and 63% since early May.
## Future Outlook
Whether Hyundai Rotem rebounds depends on when it secures its second major export contract after Poland.
## Key takeaway

Hyundai Rotem reported Q3 operating profit of 247.1 billion won (down 10%) while defense margin recovered to 28.1% amid order gaps.