Hankook tire unit posts lower earnings, higher sales

Seoul / Neu-Isenburg, Germany – Hankook has reported a 17.5% year-on-year decline in operating profit across its global tire business, to KRW 346.4 billion (€217.9 million), on second quarter sales 8.4% higher at KRW2.5114 trillion (€1,580.1 million).

Earnings declined due mainly to the impact of higher raw material costs, increased logistics expenses, and tariffs on US automotive parts, according to the Korean group.

The sales increase was driven by strong demand for replacement and OE tires in global markets and a higher proportion of high-value-added products, added its 14 Aug results announcement.

In the first half of 2025, 18-inch and larger tires accounted for 47.2% of total passenger car and light truck (PC/LT) tire sales, up 0.6 percentage points year-on-year.

In the OE segment for PC/LT vehicles, EV tires accounted for 24% of sales, marking a seven-percentage point increase from a year earlier, the Korean manufacturer noted.

Hankook said it expanded its portfolio of top-tier OE clients in the second quarter: supplying tyres for Lucid Motors’ electric SUV, the Lucid Gravity, as well as Kia’s first sedan-type EV, the EV4, and its first pickup truck, the Tasman.

Group-wide, Hankook posted second quarter revenue of KRW5.3696 trillion (€3,378.3 million) and operating profit of KRW353.6 billion (€222.4 million).

Since the first quarter of 2025, Hankook has included the performance of newly acquired Hanon Systems, recorded sales of KRW2.8581 trillion (€1,798.2 million), up 11.7% year-on-year, but operating profit down 10.2% to KRW64.3 billion (€40.4 million).

However, earnings at the ‘thermal management’ segment rose 205.1% quarter-on-quarter, supported by enhanced operational efficiency and ongoing strategic initiatives, Hankook pointed out.