Seoul: Hyundai Rotem Co., a subsidiary specializing in defense and train production under the Hyundai Motor Group umbrella, announced a significant 55.4 percent increase in its net income for the fourth quarter compared to the same period last year. This rise is attributed to robust export activities and an impressive order backlog.

According to Yonhap News Agency, Hyundai Rotem's net profit for the quarter ending in December surged to 225.4 billion won (US$157 million), up from 145 billion won in the previous year. The company's regulatory filing revealed an operating profit increase of 65.4 percent, reaching 267.5 billion won, while sales experienced a 12.8 percent growth, totaling 1.62 trillion won.

The reported earnings were in line with market predictions, as analysts had estimated an average net profit of 226.8 billion won, based on data from a survey by Yonhap Infomax, the financial data arm of Yonhap News Agency. For the entirety of 2025, Hyundai Rotem's net income nearly doubled, reaching 770.5 billion won. Additionally, the operating profit saw a 120.3 percent jump to 1 trillion won, accompanied by a 33.4 percent rise in sales, amounting to 5.83 trillion won.

According to a company official, the Defense Solutions (DS) and Rail Solutions (RS) divisions of Hyundai Rotem experienced substantial growth. The rail division's expansion was fueled by increased production for domestic high-speed rail initiatives, including Uzbekistan's high-speed rail program and an electric train project in Queensland, Australia. Meanwhile, the defense division reported high delivery rates of K2 tanks to Poland.

The company's order backlog at the conclusion of 2025 reached 29.77 trillion won, marking an increase of 58.7 percent, or approximately 11 trillion won, from the previous year.