- Stable sales growth across Europe, Korea, APAC and LATAM, with revenue up 10.8% year-on-year
- Quarterly revenue in Europe tops KRW 400 billion for first time as sales mix of global high-inch tires continues to rise
SEOUL, South Korea, July 29, 2026 – NEXEN TIRE, a leading global tire manufacturer, announced KRW 891.3 billion in revenue and KRW 34.3 billion in operating profit for the second quarter at its earnings presentation on July 29. Revenue was up 10.8% year-on-year, showing continued growth centered on key markets including Europe, despite persistent external uncertainties in the business environment.
Amid slowing demand in the automotive market and persistent geopolitical risks, the company's efforts to expand its lineup of OE(Original Equipment) vehicles and diversify sales in the replacement (RE) market translated into solid performance. In particular, with more premium OE and high-inch products on offer, the sales mix of 18-inch and above tires rose to 38.8%, up 3.6 percentage points year-on-year.
On the profitability side, cost pressures have increased due to external factors with rising raw material prices and ocean freight rates driving up costs . There were also a number of one-off expenses following the final ruling on US anti-dumping duties, which meant a higher tariff rate than projected.
By region, Europe stood out for growth, with second-quarter revenue reaching KRW 407.2 billion, the first time it has surpassed KRW 400 billion in a single quarter. The growth was driven by higher OE sales from the company's European plant, business expansion into the UK, Türkiye and other markets, and stronger local distribution and logistics capabilities due to the addition of a finished-goods warehouse to the plant.
In Korea, strong sales of EV and SUV tires have continued, with an increase in both OE revenue and high-inch sales mix thanks to the NEXEN TIRE’s broad OE portfolio covering Hyundai IONIQ 6, Kia's full EV lineup from the EV3 to the EV9, and other domestic electric vehicles. Steady growth in rental sales in the replacement market has also contributed to an improved product mix, while the company’s first-ever OE supply to China's BYD has strengthened its competitiveness in the global EV market.
Alongside its earnings announcement, NEXEN TIRE shared information on its business status and key strategies. In the second quarter, brand presence expanded with the initiation of new OE supply for electrified models such as BYD vehicles and the Hyundai STARIA EV. Supply to premium brands in particular grew sharply year-on-year, showing that the company's performance-focused R&D efforts — including AI-based performance prediction — are translating into tangible results.
"Despite growing cost pressures from external factors, we have continued to achieve top-line growth on the back of strong sales in key markets," said John Bosco (Hyeon Suk) Kim, CEO of NEXEN TIRE. "With the stable ramp-up of the second-phase expansion at our European plant and the results of our distribution improvements in North America, we expect more tangible improvements in earnings."