Europe drives Nexen’s “record high” quarterly sales

Seoul – Nexen Tire has reported “record high” quarterly sales in the first three months of 2025, due largely to higher volumes in Europe.

The South Korean tire maker posted sales of KRW771 billion (€477 million) for the quarter, up 13.7% year-on-year and 10.6% on a quarterly basis.

Earnings (EBITDA) for the period grew 1.5% to KRW99.5 billion, while operating income dropped 2% year-on-year to KRW40.7 billion, Nexen reported 30 April.

Nexen linked the 'higher-than-expected' quarterly revenue to increased volume at its European production base in Czechia and premium products such as large-rim tires.

Earnings were boosted by additional volume from phase 2 of the Czech plant, which is currently being ramped up, as well as expanded OE supply to “major automakers,” said Nexen.

Overall, Europe drove global sales growth, generating KRW316.5 billion and contributing to 41% of total sales.

Replacement tire demand in the region remained stable since the second half of last year, with an increase in demand for seasonal products such as winter and all-weather tires.

North America was the second largest market for Nexen with sales of KRW181 billion, and 24% of overall revenue.

Here, OE profitability improved with a higher share of large-rim tire sales, despite sluggish sales of major automotive brands such as Jeep and RAM.

In the replacement segment, revenue was up due to ‘distribution network recovery and diversified customers’ and despite the “tariff confusion.”

Nexen said it is exploring new growth opportunities as the market is being reshaped and customer sentiment is dampened by president Donald Trump’s policies.

The Korean tire maker said it intended to enhance its market competitiveness by implementing region-specific initiatives in the face of economic volatility.

In Europe, the company intends to generate growth through increased volume and expanded capacity.

The US, the tire maker said it “will respond flexibly to tariff measures by reallocating global supply, adjusting price, and implementing distribution plans.”

In Japan and Australia, the company is focusing on customer diversification and using local warehouses to increase sales.

In terms of products, the South Korean supplier is adopting “a unified product approach” for both EVs and internal combustion engine vehicles to make all tires suitable for all drivetrains.

According to CEO Travis Kang, Nexen’s capacity expansions and brand building are bearing fruit, despite continued exchange rate swings and uncertainties surrounding tariff policies.

“We will continue to strengthen our worldwide competitiveness by developing customer-focused product strategies and region-specific techniques,” Kang added.