Hanon Systems a Hankook Company

SEOUL, South Korea, Aug 14, 2025 – Hanon Systems, a leading global automotive thermal management supplier and a subsidiary of Hankook & Company Group, announced its financial results for the second quarter of 2025.

For the quarter, the company reported revenue of KRW 2.858 trillion, representing an 11.7% increase compared to the same period last year. Operating profit reached KRW 64.3 billion, while the company recorded a net loss of KRW 15.1 billion. Compared to the previous quarter, revenue increased by 9.2%, operating profit surged by 205.1%, and net loss improved by 33.2%.

The improved performance was driven by a recovery in electric vehicle sales volumes, price recovery from customers, favorable foreign exchange rates, and the positive impact of company-wide cost reduction efforts and operational efficiency initiatives.

The electrification business also showed positive momentum. In Q2 2025, the share of electrified vehicle (xEV) sales rose by two percentage points from the previous quarter to 29%. Supported by the global launch of new battery electric vehicle (BEV) models by major automakers, Hanon Systems projects its full-year xEV sales mix to reach approximately 30%.

Despite the positive momentum, the company noted ongoing uncertainties in the global market. The confirmation of a 15% U.S. import tariff is expected to add pressure on profitability, given that the U.S. accounts for around 30% of Hanon Systems’ revenue. In response, the company is strengthening measures around supply chain optimization and cost reduction to mitigate market risks. Since becoming part of Hankook & Company Group, Hanon Systems has also focused on enhancing financial soundness and advancing its long-term business strategy. 

Vice Chairman and CEO Soo-Il Lee stated, “While operational efficiency and business restructuring efforts have begun to yield results, external uncertainties and tariff burdens continue to present challenging business conditions. We will remain committed to strong cost-reduction initiatives to secure global competitiveness and strengthen our financial position for the long term.”

Hanon Systems is also reviewing measures to improve its financial structure and secure future growth drivers, including a possible paid-in capital increase. A company spokesperson said, “We are considering various options to enhance shareholder value and secure stable resources for growth, and we plan to finalize the financial improvement plan through a resolution of the board of directors.”

Note: Q2 2024 results have been restated to reflect the suspension of operations at certain plants.