Hanon Systems (A018880) Q2 2026 earnings summary

Executive summary

• Achieved revenue of KRW 2,875.2B in 2Q 2026, up 0.6% YoY and 4.6% QoQ, driven by expanded EU supply and favorable FX effects.

• Operating profit margin improved to 3.6% in 2Q 2026, supported by cost optimization and tariff recoveries.

• xEV revenue accounted for 31% of total revenue, with further growth expected from EU business expansion.

Financial highlights

• EBITDA rose 16.7% YoY to KRW 292.4B in 2Q 2026; operating profit reached KRW 103.7B, up 61.2% YoY.

• 1H 2026 revenue totaled KRW 5,623.5B, up 2.7% YoY; operating profit surged 135.3% YoY to KRW 200.9B.

• Net income for 1H 2026 was KRW 153.5B, reversing a loss in 1H 2025.

• COGS ratio improved to 89.1% in 2Q 2026 from 91.1% in 2Q 2025, reflecting material and freight cost efficiencies.

Outlook and guidance

• OPM expected to reach 4% in 2026, achieving the previous 2027 target one year early.

• xEV revenue share projected to grow with increased EU business and electrification mix.

• 2026 new business wins target set at $1.3B, with key programs scheduled in upcoming quarters.