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

Hanon Systems Reports 2025 Financial Results

Hanon Systems, a leading player in the automotive thermal management industry and a subsidiary of Hankook & Company Group, has unveiled its financial results for the year ending 2025. The company is celebrating a notable achievement, with annual revenue soaring to KRW 10.88 trillion, reflecting an impressive year-on-year growth of 8.9%. This growth illustrates Hanon Systems' steadfast dedication to enhancing operational efficiency and expanding its product offerings.

Financial Highlights

In the last financial year, Hanon Systems recorded an operating profit of KRW 271.8 billion. This remarkable performance can be attributed to the operational improvements initiated post-acquisition by Hankook Group. The operating margins have remained strong, recorded at 3.5% for the third quarter and 3.4% for the fourth quarter, marking consistent improvement across two consecutive quarters.

Furthermore, the company effectively managed its cost of sales ratio, keeping it below 90% for two straight quarters. This move signifies not just growth in revenue but also enhanced operational efficiency, reinforcing Hanon Systems' market position.

In an effort to bolster its financial structure and relieve the burden of net interest expenses, Hanon Systems has seen a decrease of KRW 28.8 billion year-on-year. Anticipated capital increases in the near future are expected to further alleviate these financial obligations.

Market Strategy and Customer Base Expansion

Hanon Systems has successfully diversified its global customer base. The company continues to nurture existing relationships and forge new partnerships with OEMs across Asia. Its expertise in system-level thermal management solutions, catering to nearly every type of vehicle, positions it favorably for market expansion.

Electrified vehicle sales made up 28% of total revenue in 2025. Although the global automotive market has not transitioned to electrification as quickly as expected, Hanon Systems is prepared to maintain strong profitability through its internal combustion engine (ICE) and hybrid electric vehicle (HEV) products. The company has plans in place to adapt to evolving market demands, including those for electrification and hybrid solutions.

Hanon Systems boasts a comprehensive thermal management portfolio that spans ICE, HEV, battery electric vehicles (BEV), extended-range electric vehicles (EREV), and fuel cell electric vehicles (FCEV). This extensive range underlines the company's early technological leadership in the thermal management space, providing it with a competitive edge.

Future Outlook

Looking ahead, Hanon Systems remains determined to build upon the successes of 2025, with a continued focus on improving cost structures and recovering profitability. Lee Soo-il, Vice Chairman and CEO, stated, "Despite ongoing global uncertainty, we are committed to strengthening our fundamental business structure, driving innovation in corporate culture, and achieving operational stability alongside Hankook & Company Group."

He emphasized that the company will prioritize operational discipline and research and development capabilities to accelerate growth, while also seeking new business opportunities that leverage their thermal management expertise.

As Hanon Systems navigates the evolving landscape of the automotive industry, its commitment to excellence in thermal management solutions solidifies its status as an indispensable player in the global automotive sector.