Annual Revenue Reaches KRW 10.88 Trillion, Representing 8.9% Year-on-Year Growth
Annual revenue reached KRW 10.88 trillion, representing 8.9% year-on-year growth with operating profit of KRW 271.8 billion Operating margin remained above 3.4% in both Q3 and Q4, reflecting continued profitability improvement Cost of sales ratio was maintained below 90% for two consecutive quarters, highlighting continued improvements in operational efficiency
SEOUL, South Korea, Feb. 3, 2026 /PRNewswire/ — Hanon Systems, a leading global automotive thermal management supplier and subsidiary of Hankook & Company Group, today announced its full year 2025 financial results.
In 2025, Hanon Systems recorded annual revenue of KRW 10.88 trillion, an increase from KRW 9.99 trillion in the previous year. Operating profit reached KRW 271.8 billion, driven by company-wide operational improvements and efficiency initiatives implemented following its acquisition by Hankook & Company Group.
As a result, the company maintained an operating margin of 3.5% in the third quarter and 3.4% in the fourth quarter, representing two consecutive quarters above the 3% level. The cost of sales ratio was maintained below 90% for the second consecutive quarter, highlighting continued improvements in profitability and cost structure.
Through ongoing efforts to strengthen its financial structure, net interest expenses decreased by KRW 28.8 billion year-on-year. The company expects its recent capital increase to further reduce financial burden associated with interest costs.
Hanon Systems continued to diversify its global customer portfolio, strengthening existing partnerships while securing new OEM customers in Asia. Leveraging its system-level thermal management solutions and diverse product portfolio supporting nearly all vehicle types, the company aims to further expand its presence in the global market.
Electrified-vehicle sales accounted for 28% of total revenue in 2025. As the global automotive market’s transition to electrification continues to lag behind expectations, internal combustion engine (ICE) and hybrid electric vehicle (HEV) models maintain strong market presence in many regions. In response, Hanon Systems plans to maximize profitability of its core ICE and HEV products, while remaining flexible in addressing electrification and hybrid demand.
Hanon Systems has developed a comprehensive thermal management portfolio supporting ICE, HEV, battery electric vehicles (BEV), extended-range electric vehicles (EREV), and fuel cell electric vehicles (FCEV). The company has established early technological leadership in electric vehicle thermal management, positioning itself as a leading global supplier in automotive thermal management.
Looking ahead, the company stated that it will continue to prioritize cost structure improvements and profitability recovery, building upon achievements achieved during 2025.
“Despite ongoing global uncertainty, we remain committed to strengthening our fundamental business structure, fostering corporate culture innovation, and achieving operational stability alongside Hankook & Company Group,” said Lee Soo-il, Vice Chairman and CEO of Hanon Systems.
“This year, we will accelerate growth by reinforcing operational discipline, strengthening our R&D capabilities, and pursuing new business opportunities leveraging our thermal management expertise.”
Q4 2025
Q3 2025
Q3 2024
Q2 2025
Revenue
KRW 2,702.5 billion
KRW 2,705.7 billion
KRW 2,499.8 billion
KRW 2,858.2 billion
Operating
Profit
KRW 91.2 billion
KRW 95.3 billion
KRW 93.7 billion
KRW 64.3 billion
About Hanon Systems
Hanon Systems, founded in 1986, is a global leader in thermal management solutions. In January 2025, it became a subsidiary of Hankook & Company Group. Its offering includes a wide range of solutions in the areas of heating, ventilation and air conditioning, powertrain cooling, compressor, fluid transport, and electronics and fluid pressure. The company currently operates 50 manufacturing sites and three regional innovation centers and employs more than 20,000 people across 21 countries. To learn more, visit hanonsystems.com.
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