Kumho Tire Sees Q2 Sales Rise 8% but Net Profit Slides 93%

Kumho Tire’s second-quarter 2025 results extend the strong top-line momentum reported in Q1, yet reveal how fast rising costs can erode profitability. This follow-up to our May coverage shows what’s changed, why analysts were disappointed and how the firm plans to respond.

Revenue Builds on Record Q1 Momentum

• Sales reached KRW 1.22 trillion (≈ £646 million / US$892 million), up 7.9 % year-on-year.
• Growth again came from original-equipment (OE) contracts, particularly electric-vehicle (EV) fitments for Kia, Hyundai and Volkswagen platforms.

Operating Profit Up, Net Profit Down

• Operating profit rose 15.6 % to KRW 175 billion, thanks to a richer mix of larger-diameter and EV tyres and continued price discipline.
• Net profit collapsed 93.1 % to just KRW 5.5 billion, far below the KRW 90 billion consensus. Kumho therefore slipped into a net loss for the period.

Costs and Currency Headwinds Squeeze Margin

Management blamed:

1. Higher raw-material prices (natural rubber and synthetic polymers).
2. Unfavourable FX movements, with the won weakening against the dollar.
3. Ongoing trade-tension tariffs on exports to the US and EU, which offset anti-dumping duty rebates.

These factors dragged the net margin below 0.5 %, versus 7.0 % a year earlier.

Capacity Expansion Still on Track

Kumho reiterated plans to boost annual production to 65 million tyres in 2025, expanding plants in Vietnam and considering new European capacity sites, Poland, Portugal and Serbia remain in contention. The goal is to capture OEM growth and shorten supply chains for European EV makers.

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Tagged with: Kumho Tire, Q2 2025 results, tyre sales, operating profit, net profit, OEM tyres, EV tyres, capacity expansion, raw-material costs, tyre industry finance

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