Kumho Tire Co. reported a 43.7% surge in operating profit to 5.9 trillion won ($4.5 billion) for 2024, driven by strong sales of high-margin products and expansion in the electric vehicle market.
The South Korean tiremaker’s revenue climbed 12.3% to 45.4 trillion won, with premium tire sales accounting for 42% of total volume. The company strengthened its position in the EV segment, where tire supply reached 16.3% of production, up from 9.8% the previous year.
Premium product expansion boosted profitability metrics, with operating margin reaching 13% compared to 10.2% in 2023. The company’s EBITDA margin improved to 18.8%.
Global production capacity will increase to 65 million tires annually by 2025, up from 54 million in 2022, as the company expands facilities across eight manufacturing plants. However, this aggressive growth plan comes amid uncertain raw material costs and growing competition in the EV tire segment.
Kumho plans to focus on research and development, having invested 1.47 trillion won in 2024, marking a 41% increase from the previous year. The company aims to capture more original equipment contracts from major automakers, including Hyundai, BYD, and Mercedes-Benz.
