![“Despite continued exchange rate swings and uncertainties surrounding tariff policies, our long-term efforts in capacity expansion and brand building are now bearing fruit, allowing us to continue growing,” says Travis Kang, global CEO of Nexen. [pictured: Nexen Tire's Central Research Institute in Madok, Korea.]](https://img.moderntiredealer.com/files/base/ebm/moderntiredealer/image/2025/04/681233016fce0999c61d610b-photo2_nexen_tire_the_nexen_univercity_central_res.png?auto=format,compress&fit=max&q=45&w=250&width=250 "“Despite continued exchange rate swings and uncertainties surrounding tariff policies, our long-term efforts in capacity expansion and brand building are now bearing fruit, allowing us to continue growing,” says Travis Kang, global CEO of Nexen. [pictured: Nexen Tire's Central Research Institute in Madok, Korea.]")
Nexen Tire Corp. has reported positive quarterly sales in the first quarter of 2025 in response to increasing sales volumes due to expanded capacity and premium products – like 18-inch and larger tires.
The company says it recorded revenues of $524.2 million and an operating profit of $27.7 million, which is a 13.7% year-on-year increase in revenue.
According to Nexen officials, this set a new record for the company’s highest quarterly performance and exceeded market forecasts.
First quarter growth
Nexen also says earnings were boosted by “additional volume from phase two of the Czech plant.”
The company also expanded its original equipment (OE) tire supply to major automakers “allowing it to thrive despite industry uncertainties,” says Nexen officials.
Nexen’s European division drove global sales growth, according to Nexen officials.
Replacement tire demand in the region remained stable since the second half of last year, with an increase in demand for seasonal products including winter and all-weather tires.
According to Nexen officials, Europe generated $215.1 million in revenue, accounting for 41% of the company’s total sales.
The company’s growth in Europe was driven by improved production capacity and product supply for premium vehicles, according to officials.
The company says its brand recognition through sports marketing has improved, too.
Since 2016, Nexen has supplied OE tires to major automobile brands in Europe. The increase in OE supply has driven higher replacement tire demand in the region.
Nexen officials say the freight rates have returned to a similar level to the same quarter last year. This will help reduce the freight-to-sales ratio for the company. Raw materials like natural and synthetic rubber remained high as demand held steady.
Region-specific initiatives
Nexen Tire says it intends to enhance its market competitiveness by implementing region-specific initiatives in the face of “economic volatility.”
In Europe, the company says it wants to generate growth through increased volume and expanded capacity.
In the United States, Nexen will “respond flexibly to tariff measures by reallocating global supply, adjusting price and implementing distribution plans,” according to officials.
In Japan and Australia, the company says it is focusing on customer diversification and using local warehouses to increase sales.
“Despite continued exchange rate swings and uncertainties surrounding tariff policies, our long-term efforts in capacity expansion and brand building are now bearing fruit, allowing us to continue growing,” says Travis Kang, global CEO of Nexen.
“We will continue to strengthen our worldwide competitiveness by developing customer-focused product strategies and region-specific techniques.”
