Kumho Tire posts record sales in 2025, earnings dip

Seoul — Kumho Tire reported record sales in 2025, supported by demand in overseas markets, while operating profit edged lower compared with a strong prior-year performance.

The Korean tire maker reported a 3.7% year-on-year increase in full-year sales to KRW4.7 trillion (€2.7 billion), slightly lower than its target of KRW5 trillion announced in February last year.

Operating profit came in at KRW575.5 billion, compared with KRW591 billion in 2024, when earnings rose sharply on stronger pricing and product mix.

The company said the 2025 result translated into an operating profit margin of 12%.

In the fourth quarter, Kumho posted sales of KRW1.16 trillion, down 6.5% from KRW1.24 trillion a year earlier, while operating profit declined 5.2% year-on-year to KRW145.3 billion.

Despite the year-on-year decline, Kumho said quarterly sales remained above KRW1 trillion mark for a ninth consecutive quarter, extending a run that began in the fourth quarter of 2023.

Kumho said the overall sales growth in 2025 was achieved despite tariff headwinds and a devastating fire at its flagship factory in Gwangju, Korea.

The group linked the revenue gains to expanded volumes in both the global OE and replacement markets, “centred on major markets such as the US and Europe.”

The company also pointed to a shift in product mix, saying the share of high-inch tires (18 inches or larger) reached 43.2%, while EV tires accounted for 20.4% of global OE supply.

Looking ahead, Kumho has set a sales target of KRW5.1 trillion for 2026, with the goal to raise the share of high-inch tires to 47% and EV tires to 30% of global OE sales.

The company said it plans to focus on expanding its “global footprint” and improving profitability by strengthening high-value-added product portfolio and expanding production capacity.