Hankook Tire & Technology Co Ltd (161390) Q4 2024 earnings summary

Executive summary

• Achieved record-high annual revenue of KRW 9,412 billion and operating profit of KRW 1,762 billion in 2024, with an OPM of 18.7%, driven by increased RE sales and improved product mix.

• 4Q 2024 revenue reached KRW 2,532 billion and operating profit KRW 473 billion, with both OE and RE sales growing YoY, especially in Europe and Korea.

• Maintained strong profitability through favorable FX, stabilized raw material and shipping costs, and higher sales of ≥18-inch and seasonal tires.

Financial highlights

• FY2024 revenue up 5.3% YoY to KRW 94,119 billion; operating profit up 32.7% YoY to KRW 17,623 billion; EBITDA up 24.2% YoY to KRW 22,773 billion.

• 4Q 2024 revenue up 13.4% YoY and 4.0% QoQ; operating profit up 0.6% QoQ; EBITDA up 1.2% QoQ.

• Gross margin improved to 36.8% in FY2024 from 32.4% in FY2023.

Outlook and guidance

• Targeting double-digit OPM in the 10% range for 2025, with revenue growth exceeding market demand.

• Aiming for ≥18-inch tire sales ratio within PCLT to exceed 50% and EV tire ratio in PCLT OE to reach 29% in 2025.

• Expansion plans in the US and Hungary progressing as scheduled to support sustainable growth.