NEXEN TIRE Corp. reported record quarterly revenue of KRW 771.2 billion ($538 million) for Q1 2025, a 13.7% increase from the previous year, as the South Korean tire maker capitalized on expanded production capacity and growing demand for premium products.
Operating profit reached KRW 40.7 billion ($28.4 million), with European sales accounting for 41% of total revenue at KRW 316.5 billion ($220.9 million). The company’s Czech Republic plant, which began its second phase of expansion earlier this year, has helped boost production volume of higher-margin tires.
The Korean manufacturer has focused on increasing sales of premium products, with 18-inch and larger tires driving profitability improvements despite persistent high raw material costs. European sales benefited from stable replacement tire demand and increased supply to premium automakers.
Freight costs normalized compared to last year when geopolitical disruptions and U.S. tariff concerns drove up shipping expenses, improving margins for the export-dependent firm.
CEO Travis Kang cited the company’s long-term capacity expansion and brand-building efforts as key factors behind the growth. NEXEN plans market-specific strategies to navigate ongoing challenges, including reallocating supply and adjusting pricing to address U.S. tariff measures.
The company is also developing unified tire technology for both electric and conventional vehicles, leveraging artificial intelligence and virtual reality in its product development process.
