Europe led the record growth, generating approx. $222 million in revenue, contributing about 41% of the company’s total sales.
NEXEN Tire has released its Q1 2025 earnings, reporting KRW 771.2 billion (approx. $540 million) in revenue and KRW 40.7 billion (approx. $28 million) in operating profit. This 13.7% year-on-year increase in revenue set a new record for the company’s highest-ever quarterly performance.
The company said its record Q1 results stemmed from increased sales volume, expanded capacity, and demand for premium products like 18-inch and larger tyres. Volume growth from phase two of the Czech plant also helped boost earnings. NEXEN Tire expanded its original equipment (OE) supply to major automakers, which enabled it to perform well despite industry uncertainty.
European Growth Fuels NEXEN Tyre Earnings
Europe led global sales growth for NEXEN Tire. The region saw stable replacement tire demand, especially for seasonal products like winter and all-weather tyres. Europe generated KRW 316.5 billion (approx. $222 million) in revenue, contributing about 41% of the company’s total sales.
Improved production capacity and steady supply for premium vehicles fueled Europe’s growth. Sports marketing helped strengthen brand recognition. Since 2016, NEXEN Tire has supplied OE tires to major premium auto brands in Europe, which increased replacement tyre demand.
NEXEN Tire Adjusts Global Strategy Amid Market Shifts
Geopolitical disruptions and U.S. tariff fears drove up freight rates last year, but rates have now returned to levels similar to Q1 2024. This drop helped NEXEN reduce its freight-to-sales ratio. However, raw material prices for natural and synthetic rubber stayed high due to steady global demand.
To stay competitive, NEXEN Tire will launch region-specific strategies. In Europe, the company will focus on increasing volume and capacity. For the U.S., it will adjust prices, reallocate supply, and revise distribution in response to tariffs. In Japan and Australia, it plans to boost sales by diversifying customers and using local warehouses.
