Company achieved higher sales volumes and a greater share of premium products, driven by improved utilization rates at its European plant
SEOUL, South Korea, April 30, 2025 – NEXEN TIRE, a leading global tire manufacturer, has released its Q1 2025 financial results. The company recorded revenues of KRW 771.2 billion and an operating profit of KRW 40.7 billion. This reflects a 13.7% year-on-year increase in revenue, setting a new record for the company's highest-ever quarterly performance and exceeding market forecasts.
NEXEN TIRE's strong performance in the first quarter of 2025 was driven by increasing sales volume due to expanded capacity and premium products, such as 18-inch and larger tires. Earnings were boosted by additional volume from phase 2 of the Czech plant, and the company also expanded its original equipment (OE) tire supply to major automakers, allowing it to thrive despite industry uncertainties.
Europe drove global sales growth. Replacement (RE) tire demand in the region remained stable since the second part of last year, with an increase in demand for seasonal products including winter and all-weather tires. Europe generated KRW 316.5 billion in revenue, accounting for approximately 41% of the company's total sales.
Europe’s robust growth was driven by improved production capacity and product supply for premium vehicles. Increased brand recognition through sports marketing was also beneficial. Since 2016, NEXEN TIRE has supplied OE tires to major premium automobile brands in Europe. This increase in OE supply has naturally driven resulted in higher RE demand.
Freight rates, which rose last year owing to geopolitical disruptions and increased exports ahead of increasing U.S. tariffs on China, have returned to the similar level as the same quarter last year. This helped reduce the freight-to-sales ratio. Raw material prices, particularly natural and synthetic rubber, remained high as demand held steady.
NEXEN TIRE intends to enhance its market competitiveness by implementing region-specific initiatives in the face of economic volatility. In Europe, the company intends to generate growth through increased volume and expanded capacity. The United States will respond flexibly to tariff measures by reallocating global supply, adjusting price, and implementing distribution plans. In Japan and Australia, the company is focusing on customer diversification and using local warehouses to increase sales.
NEXEN TIRE is developing a unified product approach for both electric vehicles (EVs) and internal combustion engine (ICE) vehicles. Built on superior quality and technology, its products provide optimal performance in areas like as handling, braking, and noise reduction, regardless of vehicle type. This enables consumers to select the appropriate product without being limited by drivetrain differences.
In product development, the company uses cutting-edge technology such as artificial intelligence (AI) and virtual reality (VR). Recent in-house testing proved the company's products’ superior performance in key areas such as braking, noise, and ride comfort demonstrating their suitability for both EVs and ICE vehicles.
“Despite continued exchange rate swings and uncertainties surrounding tariff policies, our long-term efforts in capacity expansion and brand building are now bearing fruit, allowing us to continue growing,” said Travis Kang, Global CEO of NEXEN TIRE. “We will continue to strengthen our worldwide competitiveness by developing customer-focused product strategies and region-specific techniques.”
