Hanon Systems a Hankook Company

Q3 sales totaled KRW 2.71 trillion, representing an 8.2% year-on-year increase.  

Operating profit reached KRW 95.3 billion with operating margin of 3.5%, reflecting recovery driven by ongoing cost management initiatives; net profit turned positive after six quarters.

Technology portfolio spanning ICE, HEV, BEV, FCEV and EREV powertrains continues to support gradual profitability improvement through enhanced operational efficiency and structural optimization.

SEOUL, South Korea, Oct. 29, 2025 – Hanon Systems, a leading global automotive thermal management supplier and a subsidiary of Hankook & Company Group, today announced its financial results for the third quarter of 2025.

For the third quarter, the company reported consolidated sales of KRW 2.71 trillion, an 8.2% increase year-over-year. Operating profit reached KRW 95.3 billion, and net profit totaled KRW 55.3 billion, marking a return to profitability for the first time in six quarters since Q1 2024.

While sales declined 5.3% from the previous quarter, operating profit and net profit improved sharply by 48.2% and 466.4% respectively, demonstrating strong recovery in profitability.

Hanon Systems attributed the improved results to effective cost management, favorable foreign-exchange movements and customer compensation settlements. Company-wide initiatives focused on cost reduction and operational efficiency are now delivering tangible results.

During the quarter, electrified-vehicle sales accounted for 28% of total revenue. Despite challenges such as the expiration of U.S. EV incentives and ramp-up periods following new model launches, the annual contribution from electrified vehicles is expected to remain around 28%.

Despite ongoing global market uncertainties driven by evolving trade and tariff policies, Hanon Systems remains well positioned to respond to changing OEM strategies across regions, and maintains a positive outlook for sustainable mid- to long-term performance.

Supported by nearly 40 years of R&D expertise, Hanon Systems has established a comprehensive technology portfolio that covers all powertrain types — from internal combustion engine (ICE) and hybrid (HEV, PHEV) to battery electric (BEV), fuel cell electric (FCEV) and next-generation extended-range electric vehicle (EREV) platforms — reinforcing its leadership in advanced thermal management solutions.

Vice Chairman and CEO Soo-Il Lee stated, “Although we are seeing tangible signs of profitability improvement, including a return to net profit and recovery in operating margin, global market uncertainty remains. We will continue to strengthen competitiveness and financial soundness through supply-chain optimization and ongoing cost-reduction initiatives.”

In addition, Hanon Systems recently approved a rights offering of KRW 900 billion, targeted for completion within the year. The capital increase is intended to reinforce financial stability and enhance operational efficiency, supporting further improvements in profitability.

	Q3 2025	Q3 2024	Q2 2025
Revenue	KRW 2,705.7 billion	KRW 2,499.8 billion	KRW 2,858.2 billion
Operating Profit	KRW 95.3 billion	KRW 93.7 billion	KRW 64.3 billion
Net Income	KRW 55.3 billion	-KRW 19.4 billion	-KRW 15.1 billion