Nexen Tire posts W891.3b in Q2 sales, European revenue tops W400b for first time

Nexen Tire reported second-quarter sales of 891.3 billion won ($608 million) and operating profit of 34.3 billion won, according to a regulatory filing Wednesday. Sales rose 10.8 percent from a year earlier, while operating profit fell 19.5 percent, weighed down by external factors including the Middle East war.

The second-quarter results were driven by strong sales in key markets, including Europe. Expanding the lineup of vehicle models supplied with original equipment (OE) tires and diversifying sales in the replacement tire market produced tangible results. The share of high-value, large-diameter tires of 18 inches or above in total sales climbed to 38.8 percent, up 3.6 percentage points from a year earlier, further strengthening the company's earnings mix.

Europe was the strongest-performing region. European sales reached 407.2 billion won in the second quarter, surpassing the 400 billion won quarterly threshold for the first time in the company's history. Growth was supported by an expanded OE vehicle lineup supplied from the European factory, along with market diversification into the United Kingdom and Turkey. The company also scaled up its finished-goods warehouse at the European plant to strengthen local retail and logistics capabilities.

In South Korea, sales momentum continued, led by electric vehicles and SUVs. OE sales and the share of large-diameter tires both rose, backed by a domestic EV OE portfolio that includes the Ioniq 6 and other EV models. Rental sales in the replacement market also grew consistently, contributing to an improved product mix. The company also began supplying OE tires to China's BYD.

On the profitability side, cost pressures mounted from higher raw material prices tied to the Middle East war, rising maritime freight rates, and a one-time charge reflecting the difference between the preliminary and final determinations in a US anti-dumping duty ruling.

In response, Nexen Tire has been stepping up its proactive strategy to address global trade issues and shifting market conditions. Ahead of potential anti-dumping tariffs on Chinese-made tires by the European Commission, the company preemptively realigned its global production network, cutting the share of European sales volumes sourced from its Chinese factory from 15 percent last year to around 4 percent this year to minimize risk.

The company also expanded OE supply to new electrification models — including BYD vehicles and the Hyundai Staria EV — as well as to core models of premium brands, to strengthen its position in the global EV market. It is rapidly growing shipments to premium automakers, leveraging proprietary R&D capabilities such as AI-based tire performance prediction. In North America, the company plans to accelerate improvements to its retail structure by expanding into large retail channels such as Walmart and ramping up the supply of large-diameter tires.

"Even as external factors increased cost burdens, we sustained top-line growth on the back of strong sales in key markets," a Nexen Tire official said. "We will deliver visible earnings improvement, building on the stable operation of the second phase of our European factory expansion and the results of our North American retail restructuring."