Hankook Tire & Technology Co Ltd (161390) Q4 2025 earnings summary

Executive summary

• Consolidated FY2025 revenue reached KRW 212.0 trillion with operating profit of KRW 18.4 trillion and OPM of 8.7%.

• Tire business delivered strong profitability, while thermal management business showed revenue growth and margin improvement.

• Financial stability improved, with a significant reduction in the debt-to-equity ratio following a rights offering.

Financial highlights

• FY2025 tire business revenue: KRW 103.2 trillion, operating profit: KRW 16.8 trillion, OPM: 16.3%.

• FY2025 thermal management revenue: KRW 108.8 trillion, operating profit: KRW 2.7 trillion, OPM: 2.5%.

• 4Q25 tire business revenue: KRW 27.5 trillion, operating profit: KRW 4.85 trillion, OPM: 17.6%.

• EBITDA for FY2025: KRW 32.2 trillion (15.2% margin).

Outlook and guidance

• 2026 tire business targets qualitative growth, focusing on profitability over volume.

• Revenue growth expected through expansion projects and market share gains in developed and emerging markets.

• OPM targeted to exceed the five-year average; ≥18-inch tire sales ratio to surpass 51%.

• Strong cash flow to be maintained despite expansion-related CAPEX.

• Gradual increase in dividend payout ratio to ~35% over FY2025-2027, with regular interim dividends.