Nexen Tire Eyes Profit Lift as Raw-Material Costs Ease

Nexen Tire has logged its highest-ever quarterly revenue for the second time in a row, with April–June 2025 sales up 12 % year-on-year to ₩804.7 billion (about £474 million). The growth reflects fresh capacity at the firm’s Žatec, Czechia plant and a rebound in US retail channels, highlighting how the tyre maker is manoeuvring through lingering global auto-sector uncertainty.

Q2 2025 Highlights

• Revenue: ₩804.7 bn, up 12 % YoY
• Operating profit: ₩42.6 bn, flat QoQ despite raw-material headwinds
• Key driver: Phase-two start-up at Czech plant lifted European output

Regional Performance

• United States: Retail partnerships recovered sales lost in H2 2024.
• Asia-Pacific: Australia and Japan posted record quarterly volumes on the back of expanded distribution.
• Europe: Additional capacity enabled balanced growth across OE and replacement channels.

Profit Outlook

Lower ocean freight costs helped offset higher natural-rubber and synthetic feedstock prices that lingered from late 2024. With raw-material indices easing since Q1 2025, Nexen expects second-half margins to improve.

Strategic Priorities

1. OE Supply Wins – Eleven new fitments in H1 2025, including Hyundai Nexo and Kia EV4.
2. Price Discipline in the US – Gradual increases to manage new tariff exposure while shifting mix to higher-margin lines.
3. Brand Visibility – Localised marketing and expanded retail footprints in North America, Europe, Middle East and APAC.

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“Despite persistent macroeconomic challenges, Nexen Tire achieved record-breaking sales for two consecutive quarters by maintaining balanced growth across both OE and RE segments,”

John Bosco (Hyeon Suk) Kim, CEO, Nexen Tire.

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Tagged with: Nexen Tire, Q2 2025 results, Czech plant, record revenue, operating profit, OE tyre supply, replacement tyre market, US tariffs, tyre manufacturing

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