#South Korea #Seoul #Thermal Management #Hanon Systems #Hankook Company Group

Hanon Systems Reports 2024 Financial Results

Hanon Systems, a prominent global supplier in the automotive thermal management sector and part of Hankook & Company Group, recently announced its financial performance for the year 2024. The results reflect a complex interplay of revenue growth and substantial restructuring costs that impacted profitability.

In the fourth quarter of 2024, Hanon Systems achieved consolidated revenues of KRW 2.5498 trillion, representing a 3.8% increase year-over-year and a 2% rise compared to the previous quarter. However, the company reported an operating loss of KRW 98.8 billion, primarily driven by one-time factors and global restructuring expenditures. This loss contributed to a total net loss of KRW 334.4 billion for the entire year, a stark reflection of decreased production volumes stemming from a notable slowdown in electric vehicle (EV) sales, compounded by high-interest expenses and impairment losses on intangible assets.

Looking ahead, Hanon Systems is confident it will exceed KRW 10 trillion in sales for 2025, with expectations of a gradual improvement in operating margins. The company has articulated a commitment to enhance profitability and cash flow, emphasizing a new regional organizational structure designed to bolster management efficiency and customer responsiveness. This strategic realignment was initiated in January 2025.

Vice Chairman and CEO Soo Il Lee emphasized that the short-term priority for the company involves enhancing its financial structure through cost-reduction initiatives and increased operational efficiency. He outlined a long-term vision aimed at instilling a proactive organizational culture supported by stronger management accountability. Lee believes these strategic measures are fundamental to establishing sustainability and integration across the organization.

To this end, Hanon Systems anticipates tangible progress by the latter half of 2025, particularly through synergies with the Hankook Company Group. The goal is to develop a stable financial framework within the next two to three years, heightening competitiveness in response to evolving customer demands.

Founded in 1986, Hanon Systems has established itself as a leader in thermal energy management, offering a diverse range of products, including heating, ventilation, and air conditioning systems, powertrain cooling solutions, and electronic fluid management. The company operates 50 manufacturing facilities and three regional innovation centers, employing over 20,000 individuals across 21 countries.

With these developments, Hanon Systems is poised to adapt vigorously to market changes while continuing to build on its heritage of innovation and reliability in the automotive thermal management industry. To learn more about their initiatives and products, visit hanonsystems.com.