Hankook Tire & Technology Co Ltd (161390) Q3 2025 earnings summary

Executive summary

• Q3 2025 consolidated revenue was KRW 5,412.7 billion, with operating profit at KRW 586.0 billion and an operating margin of 10.8%.

• For the nine months ended September 30, 2025, consolidated revenue reached KRW 15.75 trillion and operating income was KRW 1.29 trillion, with an 8.2% margin.

• Tire Business posted record-high quarterly revenue and operating profit, with 11.2% YoY revenue growth and 10.4% YoY operating profit growth.

• Net income attributable to owners was KRW 892.0 billion, with basic EPS of KRW 7,312.

• Major business combination: Acquired controlling stake in Hanon Systems, expanding into automotive thermal management.

Financial highlights

• Q3 2025 consolidated revenue: KRW 5,412.7 billion; operating profit: KRW 586.0 billion; OPM: 10.8%.

• 2025 9M consolidated revenue: KRW 15.75 trillion; operating income: KRW 1.29 trillion; net income: KRW 892.0 billion.

• Tire Business: revenue KRW 2,707.0 billion (Q3), operating profit KRW 519.2 billion, OPM 19.2%.

• Thermal Management Business: revenue KRW 2,705.7 billion (Q3), operating profit KRW 95.3 billion, OPM 3.5%.

• Cash and cash equivalents rose to KRW 2.78 trillion, with total assets at KRW 26.7 trillion.

Outlook and guidance

• 2025 9M revenue up 9.9% YoY to KRW 7,564.9 billion; OPM at 15.9%.

• Focus on sustainable growth, expanding global production, and strengthening R&D for EV and premium tire segments.

• Ongoing investments in Tennessee and Hungary plants to boost capacity.

• ≥18-inch tire sales ratio targeted to exceed 50%; 2025 9M at 47.3%.

• Targeting dividend payout ratio of 35% over the next three years, excluding one-off items.