Hanon Systems (A018880) Q2 2025 earnings summary

Executive summary

• Revenue grew 11.7% year-over-year in 2Q 2025, driven by higher sales volume, customer recovery, and favorable FX impact.

• Operating profit margin improved to 2.2% in 2Q 2025 due to cost control and operational efficiency, despite changes in R&D capitalization.

• Net income turned positive on an adjusted basis, reflecting cost innovation and operational improvements.

Financial highlights

• 2Q 2025 revenue: KRW 2,858B (+11.7% YoY, +9.2% QoQ); 1H 2025 revenue: KRW 5,476B (+10.3% YoY).

• 2Q 2025 adjusted EBITDA: KRW 293B (+6.7% YoY, +30.9% QoQ); margin 10.2%.

• 2Q 2025 adjusted operating profit: KRW 107B (-10.2% YoY, +205.1% QoQ); margin 3.7%.

• 2Q 2025 adjusted net income: KRW 27B (vs. -KRW 31B YoY); margin 1.0%.

• 1H 2025 adjusted operating profit: KRW 146B (-37.6% YoY); adjusted net income: KRW 23B (-78.7% YoY).

Outlook and guidance

• Gradual margin improvement expected as profit model undergoes structural transformation.

• New EV launches in Europe projected to support sales growth in 2025.

• 2025 new business wins target: $1B re-win, $0.5B new-win; key programs scheduled for 2H.

• XEV revenue ratio expected to reach ~30% in 2025, reflecting global BEV launches.