Nexen reports ‘record’ sales, double-digit growth in profits

Seoul – Nexen Tire has reported “record high” quarterly sales in the first three months of 2026, due largely to higher volumes in Europe.

The South Korean tire maker posted sales of KRW838 billion (€484 million) for the quarter ended 31 March, up 8.7% year-on-year and 0.6% on a quarterly basis.

Earnings (EBITDA) for the period grew 17% year-on-year to KRW116.4 billion, but was down nearly 25% compared to the previous quarter.

Operating profit, meanwhile, grew 33% year-on-year to KRW54.2 billion, and 34% sequentially, Nexen reported 29 April.

Nexen said the gains were made despite “the hostile business environment,” marked by slowing global demand and ongoing geopolitical risks.

Sales growth in the first quarter was driven by “strong performance in major markets” such as Germany, Italy and France in Europe and North America as well as growth in large-inch tires.

In addition, the recent plant expansion in Europe improved production stability, leading to increased sales from existing customers and more new clients.

Europe led the way with sales of KRW375 billion in Europe, of which 33.2% were high-inch tires, accounting for 45% of total revenue.

North America, meanwhile, accounted for 23% of total sales with a revenue of KRW191 billion, with large tires representing nearly half of overall sales in the region.

In Korea, Nexen noted ‘strong sales’ to EV models as well as higher replacement tire sales supported by improved product mix.

Nexen linked the improvement in overall profitability to “an enhanced product mix and cost stabilisation efforts.”

In particular, the sales share of high-value-added products such as ‘premium OE tires’ and tires for SUVs and electric vehicles (EVs) continued to expand, while high-inch tires (18 inches and above) accounted for 40% of total sales.

In addition, the company said its efforts to mitigate cost pressures related to raw materials and ocean freight "were successful," contributing to an improvement in margins across the board.

In terms of business development, Nexen said it was strengthening its global competitiveness by expanding product portfolio with new products catered to each region.

With ‘external uncertainties’ expected to continue into the second quarter, the tire maker said it is accelerating the diversification of its global sales structure while maintaining strong growth in key strategic markets such as Australia and Japan.

The company is also planning to expand regional distribution centres in key markets, and to advance its AI-based virtual development process using the ‘high dynamic driving simulator’, which was put into operation last year.

“We achieved solid results despite the uncertain business environment,” said an unnamed company official.

Nexen, said the company leader, will continue to “respond proactively” to market changes while strengthening product competitiveness and operational efficiency.