Hanon Systems (018880) Q4 2024 earnings summary

Executive summary

• 4Q 2024 saw a net loss driven by lower sales volume, one-off costs, and restructuring/impairment expenses.

• Full-year 2024 revenue grew 5.0% year-over-year, but profitability declined sharply due to cost pressures and volume shortfall, especially in EVs.

• Hankook Tire & Technology became the largest shareholder in January 2025, acquiring a majority stake to improve financial stability.

Financial highlights

• 4Q 2024 revenue was KRW 2,536B, up 3.2% YoY; net loss was KRW -318B, with a margin of -12.5%.

• FY 2024 revenue reached KRW 9,999B (+5.0% YoY); net loss was KRW -359B, with a margin of -3.6%.

• 4Q 2024 EBITDA dropped 85.1% YoY to KRW 32B; FY 2024 EBITDA fell 15.2% YoY to KRW 744B.

• Operating income for 4Q 2024 was KRW -138B; FY 2024 operating income was KRW 96B, down 66.3% YoY.

Outlook and guidance

• Management is committed to profit improvement and plans to restart dividends in 2025.

• New EV launches in Europe are expected to boost sales in 2025.

• New business wins target was missed in 2024, but xEV is expected to drive growth in 2025.