Hanon Systems (A018880) Q2 2025 earnings summary

Executive summary

• Revenue grew 11.7% year-over-year in 2Q 2025 and 10.3% in H1 2025, driven by higher sales volume, customer recovery, and global expansion.

• Operating profit margin improved to 2.2% in 2Q 2025, but H1 2025 operating income declined to KRW 85.4B due to increased costs.

• Net income turned positive on an adjusted basis in 2Q 2025, but H1 2025 net loss attributable to owners was KRW -40.4B, showing improvement from the prior year.

• The largest shareholder changed to Hankook Tire & Technology in January 2025.

Financial highlights

• 2Q 2025 revenue: KRW 2,858B (+11.7% YoY, +9.2% QoQ); H1 2025 revenue: KRW 5,476B (+10.3% YoY).

• 2Q 2025 adjusted EBITDA: KRW 293B (+6.7% YoY, +30.9% QoQ); margin 10.2%.

• 2Q 2025 adjusted operating profit: KRW 107B (-10.2% YoY, +205.1% QoQ); margin 3.7%.

• 2Q 2025 adjusted net income: KRW 27B (vs. -KRW 31B YoY); margin 1.0%.

• Cash and cash equivalents at June 30, 2025: KRW 788.6B, down from KRW 1,346.5B at year-end 2024.

Outlook and guidance

• Gradual margin improvement expected as profit model undergoes structural transformation.

• New EV launches in Europe projected to support sales growth in 2025.

• 2025 new business wins target: $1B re-win, $0.5B new-win; key programs scheduled for 2H.

• Dividend payments are under review for resumption as soon as financial performance allows.