Hanon Systems Posts 271.8 Billion Won in Operating Profit, Up 184.6% Year-on-Year

Structural Improvements Gain Traction After Integration into Hankook & Company Group

Hanon Systems successfully improved its fundamentals last year, posting an operating profit of 271.8 billion won.

Hanon Systems announced on February 3 that it recorded sales of 10.8837 trillion won and an operating profit of 271.8 billion won last year. These figures represent year-on-year growth of 8.9% and 184.6%, respectively.

Hanon Systems Corporate Identity.

Hanon Systems is a global automotive thermal and energy management solutions company under the Hankook & Company Group. After being acquired and merged into Hankook & Company Group in January last year, the company pushed ahead with group-wide structural improvements and operational efficiency measures. As a result, it maintained an operating margin in the 3% range for two consecutive quarters, posting 3.5% in the third quarter and 3.4% in the fourth quarter. Its cost ratio, a key indicator of operational efficiency, also remained below 90% for two consecutive quarters, demonstrating continued improvement in its profit structure.

In addition, improvements in its financial structure reduced net interest expenses by 28.8 billion won year-on-year, and the company expects that a paid-in capital increase will further ease the financial burden from interest costs. Hanon Systems stated that it plans to continue its efforts to improve the cost ratio and restore profitability in 2026 as well.

The electrification business, its future growth engine, closed the year with a 28% share of total sales. As the pace of electrification in the global automotive market enters an adjustment phase, the life cycle of internal combustion engine (ICE) and hybrid electric vehicle (HEV) models is being extended. In response to these market changes, Hanon Systems plans to maximize the profitability of its existing core products, while also responding flexibly to the expansion of electrification by European customers and to increasing demand for hybrid (HEV) models.

The company also continued to diversify its global customer base. In addition to strengthening existing partnerships, it expanded its portfolio by securing new original equipment manufacturers (OEMs) in Asia as customers. Hanon Systems plans to continue expanding its global market share, leveraging its thermal management technologies that cover all vehicle segments and its capabilities in providing system-level solutions.

Vice Chairman and CEO Lee Soo-il said, "Amid global uncertainties, we are continuing our efforts to normalize management and innovate corporate culture through multifaceted initiatives to improve our corporate fundamentals and through synergies with Hankook & Company Group," adding, "This year, we will accelerate qualitative growth by pursuing sound management and strengthening our research and development capabilities, as well as by pushing forward new businesses for future growth based on our accumulated thermal management technologies."

This content was produced with the assistance of AI translation services.