Hanon Systems (018880) Q2 2026 earnings summary

Executive summary

• Achieved revenue of KRW 5,623.5B in 1H 2026, up 2.7% YoY, with operating profit of KRW 200.9B and net income of KRW 153.5B, marking a return to profitability after prior losses.

• Operates a single business segment in automotive thermal management, with Hyundai Motor, Hyundai Mobis, and Ford accounting for over 50% of sales.

• Completed a major capital increase and changed largest shareholder to Hankook Tire & Technology in early 2025.

• Achieved 2027 cost structure and OPM targets one year ahead of schedule, with OPM at 3.6% in 2Q 2026.

• xEV revenue accounted for 31% of total revenue, with further growth expected from EU business expansion.

Financial highlights

• EBITDA rose 16.7% YoY to KRW 292.4B in 2Q 2026; operating profit reached KRW 103.7B, up 61.2% YoY.

• Gross margin improved to 10.7% from 8.1% YoY; COGS ratio improved to 89.1% in 2Q 2026 from 91.1% in 2Q 2025.

• Cash and cash equivalents at period end: KRW 968B.

• Total assets: KRW 10,974.4B; Total liabilities: KRW 6,707.1B; Equity: KRW 4,267.3B.

• No interim dividend was paid.

Outlook and guidance

• OPM expected to reach 4% in 2026, achieving the previous 2027 target one year early.

• xEV revenue share projected to grow with increased EU business and electrification mix.

• 2026 new business wins target set at $1.3B, with key programs scheduled in upcoming quarters.

• The company aims to resume dividends once profitability and cash flow stabilize.

• Focus remains on global expansion, customer diversification, and R&D for eco-friendly and high-efficiency automotive thermal solutions.