Nexen earnings dip despite record annual revenue

Seoul – Nexen Tire has reported a slight year-on-year dip in operating profit despite a record KRW3.2 trillion (€1.85 billion) revenue in 2025.

The tire maker saw operating profit decline 1.1% to KRW170 billion last year, down from KRW187 billion in 2024.

Sales, meanwhile, reached a record high of KRW3.2 trillion, up 12% compared to 2024, said Nexen 4 Feb.

For the final quarter of the year, Nexen posted a sharp 161% year-on-year increase in operating profit to KRW40.5 billion, on 19.4% higher in sales of KRW833 billion.

Commenting on the results, Nexen said it pursued “both volume and quality growth” by strengthening core business competitiveness during the year.

Sales growth was mainly linked to the second phase of the European plant expansion, achieved despite “increasing business uncertainty" caused by US tariffs.

In the OE segment, Nexen said it “maintained strong growth” by supplying a diversified product lineup for both EVs and internal combustion engine (ICE) vehicles.

In the replacement segment, the company achieved “steady growth” through region-specific product strategies.

The Korean tire maker said that US tariffs had “a limited impact” on profitability, although uncertainties affected demand.

Nexen said it minimised the impact of trade uncertainties by “diversifying its distribution channels for each region and selling more large-inch tires to improve its product mix.”

Furthermore, the company reported gains from cost efficiency improvements as well as the stabilisation of raw material prices and ocean freight rates.

Alongside its earnings announcement, Nexen also shared its management status and key strategies.

The company launched its “EV Root” lineup in 2025, which it said reflects its strategy of designing “one tire” for both EVs and ICE vehicles.

The company expanded OE partnerships with global car makers and established new overseas sales bases to achieve mid- to long-term growth.

In 2026, Nexen said it intended to “proactively respond to the trade uncertainties that have arisen with the spread of shifts in global trade policies.”

The tire maker also said it would focus on strengthening its sales capabilities and achieving “quality growth” by improving its product and distribution mix.

To support this, the company will carry out sales-focused marketing activities to increase brand visibility and strengthen cooperation with customers.

“Despite growing uncertainty in the global trade environment, we achieved a meaningful milestone by surpassing KRW3 trillion in annual sales for the first time,” said CEO John Bosco (Hyeon Suk) Kim.