Hankook's Q3 tyre revenue rose 3.7% to a record KRW 2.81tn, but higher raw-material and logistics costs reduced profit.
Hankook Tire & Technology reported record quarterly revenue in its tyre business for the third quarter of 2026, although rising raw-material and logistics costs weighed on profitability despite stronger sales volumes and growth in premium products.
The South Korean manufacturer recorded tyre-division sales of KRW 2.8083 trillion (€1.71 billion), an increase of 3.7% compared with the same period last year. However, operating profit declined 2.6% to KRW 505.9 billion (€308.8 million).
The contrasting results highlight the cost pressures facing Hankook's core tyre operations, even as its premium and electric vehicle (EV) tyre business continues to expand.
According to Hankook's third-quarter financial announcement, published on 6 November, increased tyre sales volumes and favourable foreign exchange movements contributed to the record revenue.
However, higher raw-material and logistics expenses, which the company linked partly to geopolitical tensions in the Middle East, affected operating earnings.
The tyre division's operating margin narrowed to approximately 18.0%, compared with 19.2% in the third quarter of 2025.
Source: Hankook Tire & Technology, 6 November 2026. Figures relate to tyre operations, not the wider consolidated group.
Hankook said increased sales of higher-value products helped offset some of the additional costs, although the improvement in product mix was insufficient to prevent the decline in operating profit.
Larger-diameter tyres and EV-specific products remain important components of Hankook's business.
During the first nine months of 2026, tyres measuring 18 inches and above accounted for 49.4% of the company's passenger car and light-commercial tyre sales.
Over the same nine-month period, EV-specific tyres represented 32.3% of passenger car and light-commercial original equipment (OE) tyre sales.
These figures reflect the composition of Hankook's own sales rather than its share of the wider global tyre market.
The manufacturer has continued developing its premium OE relationships, including tyre supply for Porsche models such as the 911 Carrera, Panamera and Taycan, alongside electric vehicles including the Ford Mustang Mach-E.
These relationships provide an established market for Hankook's higher-value tyre products as it develops its replacement-market offering.
At consolidated group level, Hankook reported third-quarter revenue of KRW 5.465 trillion (€3.34 billion) and operating profit of KRW 598.8 billion (€365.5 million).
These figures include Hanon Systems, the automotive thermal-management specialist consolidated into Hankook's financial results in 2025.
Hanon reported quarterly revenue of KRW 2.6569 trillion, down 1.8% year on year, while operating profit increased 26.6% to KRW 120.6 billion.
The improvement in Hanon's profitability provides important context for the group's overall financial performance, which differs from the decline recorded by Hankook's tyre operations.
For the tyre business, the latest figures show that higher sales volumes, favourable currency movements and a growing premium product mix are supporting revenue, but have not fully offset rising operating costs.
Tags: Hankook Tire, Hankook Q3 2026, tyre industry financial results, tyre manufacturing, tyre operating profit, premium tyres, EV tyres, Hanon Systems, tyre sales, original equipment tyres
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