Hanon Systems (018880) Q4 2025 earnings summary

Executive summary

• Revenue grew 8.9% year-over-year in FY2025, driven by higher sales volume, tariff recovery, and favorable FX impact.

• Operating profit margin improved to 2.5% for FY2025, supported by disciplined cost management despite changes in R&D capitalization.

• 4Q25 revenue was KRW 2,702.5B, nearly flat year-over-year, with sustained recovery momentum from Q3.

Financial highlights

• FY2025 revenue: KRW 10,883.7B, up 8.9% from FY2024.

• FY2025 EBITDA: KRW 1,012.3B, up 35.6% year-over-year; margin increased to 9.3%.

• FY2025 operating profit: KRW 271.8B, up 184.5% year-over-year; margin at 2.5%.

• 4Q25 EBITDA margin: 10.6%, up 0.2 percentage points sequentially.

• 4Q25 operating profit: KRW 91.2B, margin 3.4%.

Outlook and guidance

• 2026 revenue guidance: KRW 11,000B, targeting 4%+ operating profit margin.

• EBITDA expected to reach KRW 1,200B in 2026.

• Free cash flow projected to turn positive in 2026 as EBITDA exceeds expenditures.

• Anticipated XEV revenue growth in 2026, especially from European customers and HEV sales.