Hankook Tire & Technology on Thursday reported consolidated sales of 4.96 trillion won and operating profit of 354.6 billion won for the first quarter of 2025, reflecting the first financial contribution from Hanon Systems following its acquisition earlier this year.
The South Korean tire maker acquired Hanon Systems, a global automotive thermal energy management supplier, in January. As a result, Hankook’s Q1 earnings include both tire and thermal management operations.
In its core tire business, sales rose 10.3% year-on-year to 2.35 trillion won, driven by higher demand for high-value products and expanding original equipment (OE) supply to premium automakers. However, operating profit in the segment fell 16.3% to 333.6 billion won, with the company citing rising raw material and freight costs amid global economic uncertainty.
The newly added thermal management division, operated by Hanon Systems, contributed 2.62 trillion won in sales and 20.9 billion won in operating profit.
The share of 18-inch and larger tires among passenger and light truck tire sales reached 47.1%, up 0.3 percentage points from the previous year. China recorded the highest share at 64.7%, followed by Korea (58.5%), North America (57.1%), and Europe (39.1%).
Sales of electric vehicle (EV)-dedicated OE tires accounted for 23% of the total OE segment, marking a six-point increase from the same period last year. The growth was supported by continued demand for EV tires and an expanding OE portfolio, including Hankook’s ultra-high-performance Ventus evo SUV tire recently selected for Volkswagen’s third-generation Tiguan.
Hankook Tire supplies OE tires to nearly 50 premium automotive brands across more than 280 vehicle models, including the Mercedes-AMG GT Coupe and BMW M5. The company also plays a key role in the EV market as an OE tire provider for major brands such as Porsche, Audi, BMW, Hyundai, Kia, Tesla, BYD, and Lucid.
The company said its iON EV tire lineup, launched in 2022, now includes over 300 specifications ranging from 16 to 22 inches. It also continues to build its premium brand image and technical edge through involvement in over 70 motorsports events globally, including FIA Formula E and the FIA World Rally Championship.