Despite slowing global demand and geopolitical risks, the company said it achieved its highest quarterly revenue on record.
Nexen Tire announced first-quarter (Q1) results, reporting revenue of KRW 838.3 billion ($569 million) and operating profit of KRW 54.2 billion ($36.79 million). Despite slowing global demand and geopolitical risks, the company said it achieved its highest quarterly revenue on record.
Nexen said tire sales growth in Q1 was driven by stronger performance in Europe and North America. A recent plant expansion in Europe improved production stability, supporting increased orders from existing customers and new clients.
The company said original equipment (OE) sales remained stable due to a diversified product portfolio, even amid a downturn in global automotive demand.
Product Mix and Profitability
Profitability improved on an enhanced product mix and cost stabilization. Sales of higher-value products, including premium OE fitments and tires for SUVs and electric vehicles (EVs), expanded.
Eighteen-inch and larger tires accounted for 40% of total sales. Nexen Tire said efforts to mitigate raw material and ocean freight cost pressures contributed to margin gains.
In the first quarter, the company targeted premium demand in Korea with the high-performance N’FERA Sport and the all-weather N’BLUE 4SEASON 2, following their introduction in Europe and the U.S. In Latin America and the Asia-Pacific region, Nexen Tire introduced the high-efficiency summer tire N’BLUE S while working with local distributors to enhance retail competitiveness in tire sales.
Outlook and Strategy
With external uncertainties expected to continue into the second quarter, Nexen Tire said it is accelerating the diversification of its global sales structure while maintaining growth in strategic markets such as Australia and Japan.
The company said it plans to expand regional distribution centers in key markets and advance its AI-based virtual development process using the high dynamic driving simulator introduced in South Korea last year. Nexen Tire said these initiatives support mid- to long-term growth.
A Nexen Tire official said, “We achieved solid results despite the uncertain business environment. We will continue to respond proactively to market changes while strengthening product competitiveness and operational efficiency to sustain quality growth.”
