Hankook Tire & Technology Co Ltd (161390) Q2 2025 earnings summary

Executive summary

• Consolidated revenue reached KRW 10.33 trillion in H1 2025, with operating profit of KRW 708.3 billion and an operating margin of 6.9%.

• Net income attributable to owners was KRW 501.8 billion, with basic EPS of KRW 4,113 for the period.

• Tire business revenue grew 8.4% YoY in 2Q, while operating profit declined 17.5% due to higher costs.

• Major business combination: Hanon Systems became a consolidated subsidiary, strengthening the automotive thermal management segment.

• Thermal management business revenue increased 11.7% YoY in 2Q, but operating profit fell 10.5%.

Financial highlights

• Tire business: H1 2025 revenue KRW 4.86 trillion, operating profit KRW 680 billion, OPM 14%.

• Thermal management: H1 2025 revenue KRW 5.48 trillion, operating profit KRW 85.3 billion, OPM 1.6%.

• EBITDA for 2Q 2025 was KRW 7,268 billion, with a consolidated debt-to-equity ratio of 101.1%.

• Total assets rose to KRW 25.2 trillion, and equity attributable to owners reached KRW 10.8 trillion.

• Cash and cash equivalents at period-end were KRW 2.18 trillion.

Outlook and guidance

• Targeting double-digit operating margin in the 10% range and revenue growth exceeding market demand for 2025.

• Expansion plans in the U.S. and Hungary are proceeding as planned to ensure sustainable growth.

• Continued focus on global expansion, R&D, and premium product development in both tire and automotive thermal management segments.

• Ongoing investments in overseas plant expansions and automation to support future growth.

• Sales ratio of ≥18-inch tires within PCLT expected to exceed 50% in 2025; EV tire ratio in PCLT OE to reach 29%.