Hankook Posts Record Quarterly Revenue

Hankook Tire & Technology Co. Ltd.'s tire division generated $7 billion in sales and $1.1 billion in operating profit during 2025.

Overall, the company, which also includes a thermal management division, achieved $14.5 billion in sales and operating profit of around $1.2 billion last year.

According to Hankook officials, the Seoul, South Korea-based firm enjoyed its "highest quarterly revenue on record" during the fourth quarter of 2025, achieving around $1.85 billion in tire sales and an operating margin of 17%.

While tire sales volume declined during the quarter, revenue increased by nearly 9% on a year-over-year basis thanks to "price increases, improved product mix" and other factors.

Global markets

"The global OE market continued to grow in China" during the last quarter of 2025, "supported by subsidy programs and the company recorded improved OE sales" year-over-year.

During the fourth quarter of 2025, the global replacement tire market "continued to show regional demand divergence."

Hankook posted year-over-year replacement channel tire sales growth in North America, South Korea, China and other markets.

Hankook's sales ratio of 18-inch-and-larger PLT tires reached 49.2% during the fourth quarter, up 1.3% over the same period in 2024, and its sales ratio of electric vehicle (EV) tires increased by 9% on a year-over-year basis to 32%.

In North America

In its recently released financials, Hankook provided its assessment of the North American tire market in 2025, noting that "overall demand softened" in the replacement channel "amid an uncertain environment, including tariffs."

In the OE channel, Hankook officials noted that EV sales "declined following the expiration of EV subsidies."

The company, however, enjoyed sales increases in the replacement channel, "driven by strong sales in Canada," but OE sales declined year-over-year due to "weaker new vehicle sales."

Hankook officials say the $1.6 billion expansion of its plant in Clarksville, Tenn., "is progressing as planned." The investment will enable the plant to double its consumer tire production and build TBR tires.

Hankook will focus on strengthening sales of "high-inch tires" and will focus on "strategic products, while enhancing marketing efforts in line" with the plant's expansion.

2026 outlook

Hankook is targeting year-over-year revenue growth in 2026 "through completion of the (Tennessee) expansion project and continued sales volume growth," say company officials.

It also intends to "achieve high profitability through increased sales of strategic products," with the goal of 18-inch-and-above PLT tires to exceed 51% of the firm's overall sales.

"The company remains committed to achieving mid-term shareholder return targets and enhancing corporate value."