Hankook reports 58% jump in second quarter operating profit

Seoul – Hankook Tire & Technology has reported consolidated second quarter 2026 revenue of KRW5,682 billion (€3.47 billion), up 5.8% year-on-year, while operating profit rose 58.1% to KRW559.1 billion.

Quarterly revenue reached a record high over the three months ended 30 June, supported by growth in both the tire business and thermal management operations, as well as an improved product mix, said Hankook 11 Aug

The tire business generated a revenue of KRW2,807 billion, an 11.8% increase from the second quarter of 2025, while segment operating profit increased 39.5% to KRW483.2 billion.

Hankook attributed the tire business performance to stable replacement demand and increased OE supply, alongside improved average selling prices and product mix.

Global OE growth was led by electric and hybrid vehicles, while Hankook said replacement demand softened amid geopolitical risks and inflationary concerns.

Overall, Hankook said, higher sales volumes in key markets, “profitability-focused” pricing and product-mix strategies supported revenue growth.

High-value products continued to account for an increasing share of sales in the tires business.

Tires of 18 inches and larger represented 49.5% of passenger car and light truck (PC/LT) sales in the quarter, compared with 41.6% in the first quarter and 38.4% a year earlier.

EV tires accounted for 31.8% of PC/LT OE sales, approaching Hankook’s annual target of 33%.

In Europe, tire revenue increased to KRW1,240 billion, up from KRW1,209 billion in the first quarter of 2025.

Hankook said replacement demand grew ahead of the introduction of anti-dumping duties on Chinese PC/LT tires in July.

All-weather and winter products led PC/LT growth in the region, while truck and bus radial (TBR) tires benefited from stable inland freight demand.

OE revenue, meanwhile, was supported by sales of supplied models and stronger new-vehicle sales.

In North America, tire revenue rose to KRW645 billion from KRW567 billion in the first quarter, despite lower sales volumes amid weaker consumer sentiment.

Hankook said revenue grew year-on-year through sales of higher-value-added products.

Hankook’s thermal management business, which includes Hanon Systems, generated second-quarter sales of KRW2,875 billion, up 0.6% year-on-year.

Segment operating profit rose sharply, by 61.2%, to KRW103.7 billion, said Hankook.

The gains were linked to favourable foreign exchange effects, higher supply to European premium customers and effective material and logistics cost management.

The business also benefited from tariff recoveries and increased volumes across its customer portfolio, with xEV products accounting for 31% of revenue.

Hankook said the thermal management business will focus strengthening supply for existing internal-combustion engine and hybrid/electric vehicle programmes, particularly in Europe.