Hanon Systems (A018880) Q3 2025 earnings summary

Executive summary

• Revenue grew 8.2% year-over-year in 3Q 2025, driven by higher sales volume, tariff recovery, and favorable FX effects.

• Operating profit margin improved to 3.5% due to disciplined cost management, despite changes in R&D capitalization.

• XEV (electric vehicle) revenue ratio reached 28% for the quarter, with full-year expectations at a similar level.

Financial highlights

• 3Q 2025 revenue: KRW 2,705.7B, up 8.2% YoY; operating profit: KRW 95.3B (adj. 133.6B); net income: KRW 55.3B (adj. 93.6B).

• EBITDA margin improved to 10.4% (adj. 11.9%) from 10.2% YoY.

• 3Q YTD 2025 revenue: KRW 8,181.2B, up 9.6% YoY; net income: KRW 17.6B (adj. 116.3B).

• Cost of goods sold ratio declined to 89.4% (adj. 89.0%) of sales, reflecting ongoing cost-saving initiatives.

Outlook and guidance

• Gradual profit improvement expected, supported by increased volume and FX effects.

• Full-year XEV revenue ratio expected at ~28%, reflecting IRA termination and new EV launches.

• SG&A expected to stabilize with continued cost control.