Hankook earnings buoyed by thermal management segment

Seoul – Hankook Tire & Technology has reported a strong growth in full-year sales and earnings in 2025, driven partially by the €20-billion acquisition of Hanon Systems which was integrated into the group as its thermal management segment at the beginning of last year.

Group-wide, Hankook reported revenue of KRW21.2 trillion (€13.2 billion), up from KRW9.4 trillion in 2024, while operating profit rose 4.5% to KRW1.8 trillion.

In the tire business, sales reached KRW10.3 trillion, up 9.6% year-over-year, surpassing the KRW10 trillion mark for the first time, said the Korean group 4 Feb.

Operating profit reached KRW1.6843 trillion, down 4.5% compared to the year before.

In the final quarter of 2025, the tire business recorded its highest quarterly sales at KRW2.7 trillion, with operating profit increasing 2.5% year-over-year to KRW485 billion.

Hankook said it achieved sales growth in the tires segments due to “resilient demand” for both replacement and OE tires and despite “heightened global economic uncertainty last year.”

In the thermal management segment, consolidated as a subsidiary of Hankook from the first quarter of last year, full-year revenue reached KRW10.9 trillion, up 8.9% year-over-year.

Segment operating profit increased 184.5% to KRW271.8 billion during the year, according to Hankook.

In the final quarter of last year, the business recorded revenue of KRW2.7 trillion and operating profit of KRW91.2 billion, demonstrating what Hankook described as “the benefits of sustained fundamental improvement since the consolidation.”

In the tires business, 18-inch and larger tires accounted for 47.8% of total passenger car and light truck (PCLT) tire sales in 2025.

Additionally, EV tires represented 27% of PC/LT sales, which Hankook said reflected its “continued pursuit of profitability-driven qualitative growth.”

Last year, Hankook expanded its global brand partnerships, including partnerships with BMW, Cupra, Kia, Lucid Motors, Porsche and Xiaomi.

The company currently supplies OE tires to 40 global automotive brands covering 300 vehicle models.

Meanwhile, Hankook said its EV-specialised iON tires “continued to expand” OE supply for premium electric vehicle models.

The brand also “significantly broadened” its influence in the replacement tire market across key global regions, including Europe, Korea, North America, China, ASEAN, and the Middle East, said Hankook.