K2 tanks · Rail E&M · Pending defense acquisition
Hyundai Rotem Company
Hyundai Rotem supplies K2 tanks and rail vehicles and systems. Nine-month 2026 revenue reached KRW 4.6842tn, while operating profit fell 4.7% to KRW 703.7bn despite sales growth. In October it signed a KRW 239.2bn Taoyuan rail E&M contract and agreed to buy Hyundai Wia’s defense division for KRW 358.386bn, with closing targeted for March 2027.
Business categories Defense Primes · Defense · primary
- Defense Primes: Hanwha Aerospace · Leonardo S.p.A. · Lockheed Martin · Northrop Grumman · RTX
064350.KS Updated Oct 25, 2026 5 AI consumers· 4 recurring
Per the valuechain.wiki graph, Hyundai Rotem Company is directly linked to 2 companies (1 supply, 0 revenue, 1 investment relationships) and reaches 2 companies within two hops; the links are backed by 23 dated sources, 8 of them primary filings (as of 2026-10-25).
Financials & Segments
- Total revenue · 9M 2026 consolidated revenue KRW 4.6842tn; operating profit KRW 703.7bn; margin 15.0%
- Customer concentration · Order backlog at September 2026: KRW 29.142tn, including Rail Solutions KRW 19.031tn, AD&RH KRW 9.5228tn and Eco-Plant KRW 588.2bn. Backlog is not recognized revenue.
- Segments · Defense, robotics and hydrogen (AD&RH) · Rail Solutions · Eco-Plant
Revenue from
- 국내외 철도 운영사·발주처 (고속철·전동차) High confidence· contract 391,446,000,000원 · 에드먼턴 경전철(2026.7) · DART supply-contract filing
Rail Solutions: Canada's Edmonton high-floor LRT at KRW 391.4bn (8.9% of revenue), Sinansan Line rolling stock at KRW 235.3bn (POSCO E&C), SR high-speed EMU-320, GTX-B/C PPP, and the Daejang-Hongdae metro.Confirms KO FSS DART Published Jan 30, 2026: Hyundai Rotem supply contract (Sinansan Line rolling stock) - 타오위안시정부 철도공정국 High confidence· contract ₩239.2B · 2026-09-01 to 2033-04-11 · Taoyuan Green Line Zhongli extension E&M supply contract
The Taoyuan City Government rail bureau is the buyer in the Green Line Zhongli extension E&M contract. The October 21, 2026 filing states KRW 239,197,358,517, equal to 4.1% of FY2025 consolidated revenue, for a September 2026 to April 2033 term. Contract value is not current-quarter recognized sales.Confirms KO DART, Financial Supervisory Service Published Oct 21, 2026: Hyundai Rotem supply contract: Taoyuan Green Line Zhongli extensionConfirms EN Seoul Economic Daily Published Oct 21, 2026: Hyundai Rotem Wins $169 Million Taiwan Rail E&M Order - 폴란드 군비청 (K2 전차) High confidence· Count 210대 (EC3) · 2026~2034
K2 tanks for Poland: the third execution contract (210 units - 120 Korean-built, 90 local) targeted within the year, running 2026-2034; Iraq (250 units, ~KRW 9tn) and Peru (54 K2s plus 141 wheeled APCs) in parallel talks.Confirms KO Financial News Published Jul 9, 2026: Hyundai Rotem's third Polish K2 contract takes shape - 폴란드 군비청 (K2 전차 수출) High confidence· Count 210대 (EC3 추진) · 2026~2034
K2 tank exports to Poland: the first contract (180 units) is in delivery and a second execution contract is underway; a third (EC3) of 210 units (120 Korean-built, 90 local) is targeted for 2026-2034. The annual report lists the Poland K2 supply and its second execution contract.Confirms KO Financial News Published Jul 9, 2026: Hyundai Rotem's third Polish K2 contract takes shapeMentions KO Samsung Securities Published Apr 13, 2026: Hyundai Rotem: A defense stock that can still be called inexpensive - 방위사업청 (K1/K2 창정비·PBL·장갑차) High confidence
DAPA is the top domestic ground-weapons customer: K1/K1A1 overhaul, K2 overhaul development, K1-series performance-based logistics, and 30mm wheeled AA gun and wheeled APC production. A 2026 K-1 recovery/bridge-tank maintenance contract. - 국내외 철도 운영사 (레일솔루션) Medium confidence
Rolling stock (metro, high-speed) runs alongside defense as the second pillar.Mentions KO Financial News Published Jul 9, 2026: Hyundai Rotem's third Polish K2 contract takes shape - 페루 (K2 전차·차륜형장갑차) Medium confidence
A framework agreement with Peru for K2 tanks and wheeled APCs, plus preferred-bidder status on the wheeled-APC program - a Latin America export beachhead.
Pays to
- Hyundai Wia High confidence· component 120 mm · K2 production · K2 tank main-gun caliber
Hyundai Rotem sources the 120mm K2 main gun from Hyundai Wia. On 19 October 2026 Hyundai Wia agreed to transfer its defense division to Hyundai Rotem for KRW 358.386bn. Closing is targeted for 31 March 2027, subject to the 27 November shareholder vote and other conditions. The unit had KRW 393.1bn of 2025 sales, 4.6% of Wia’s total. The existing K2 main-gun supply relationship remains current until closing.Confirms KO Financial Supervisory Service DART Published Oct 19, 2026: Hyundai Wia decision to transfer its defense businessConfirms KO Financial Supervisory Service DART Published Oct 19, 2026: Hyundai Rotem acquisition of Hyundai Wia defense businessConfirms EN The Korea Times Published Oct 19, 2026: Hyundai Rotem acquires Wia’s defense biz as group reorganizes portfolioConfirms EN The Asia Business Daily Published Aug 13, 2025: Hyundai Wia Significantly Expands Research Organizations to Target Exports - K2 파워팩 (엔진·변속기, HD현대인프라코어·SNT다이내믹스) Medium confidence
The K2 tank powerpack (engine and transmission) has been localized - engine from HD Hyundai Infracore, transmission from the SNT Dynamics line; as integrator, Rotem sources the core driveline. - 철도차량 부품·강재 (대차·의장·알루미늄 차체) Medium confidence
Assembles rolling stock from bogies, fit-out parts, aluminum car bodies and steel sourced from domestic and overseas partners - an integrator model.
Investors
- Hyundai Motor Company High confidence· Market share 33.8% · 2025 year-end · Hyundai Rotem 2025 shareholder status
Hyundai Motor is Hyundai Rotem's largest shareholder with 36,856,636 common shares, or 33.8%, creating a long-term capital link to its defense and rail investment cycle.Confirms KO Hyundai Rotem Published Dec 31, 2025: Hyundai Rotem stock information: 2025 shareholder status
Value-chain ripple (2 tiers)
Following node-to-node links up to 2 tiers; each firm is shown once, at its nearest tier.
| Company | Chain | '21 | '22 | '23 | '24 | '25 | YTD |
|---|---|---|---|---|---|---|---|
| Hyundai Rotem Company | node | -3.4 | +48.4 | +3.1 | +108.8 | +290.1 | -64 |
| Hyundai Wia | benef1 | +50.6 | -37.3 | +31.6 | -41.1 | +104.9 | -33.8 |
| Hyundai Motor Company | benef2 | +11.4 | -24.5 | +36.8 | +10.5 | +49.1 | -3.5 |
YTD as of 2026-10-23 · source: Yahoo Finance
Hyundai Rotem, the K2 prime, repriced ahead of its component supplier: shares rose 108.8% in 2024 and 290.1% in 2025, while Hyundai Wia followed with a 125.1% gain in 2025. Through October 23, 2026, Rotem was down 64.0% and Wia 41.8%. Earnings lagged the share cycle. Rotem’s nine-month revenue rose 11.2% to KRW 4.6842tn, but operating profit fell 4.7% to KRW 703.7bn. Q3 AD&RH revenue fell 10.1% year on year, while rail revenue rose 21.4% with just a 0.9% rail operating margin. The KRW 239.2bn Taoyuan Green Line contract signed October 21 supports the rail backlog, but cannot be added to current revenue. The KRW 358.386bn Wia defense acquisition is scheduled to close March 31, 2027, so the K2 gun supply link remains external until closing. Internal sales elimination and integration costs will determine the economic result. Next checks are Wia’s November 27 shareholder vote, conversion of export prospects into signed contracts, and a recovery in rail margins. If the KRW 29.142tn backlog fails to convert into sales and profit, the vertical-integration and rail-offset thesis weakens.
Analysis generated from returns as of 2026-10-23Analyses covering this node
← All companiesMarkdown · JSON · Customers · Suppliers · Ripple