Hanon Systems Announces Second Quarter 2026 Financial Results

• Revenue reached KRW 2.87 trillion and operating profit of KRW 103.7 billion, marking continued earnings recovery driven by structural improvements and business diversification
• Achieved a cost of goods sold (COGS) ratio to 89.3% in the first half of 2026 through global restructuring and company-wide cost optimization initiatives
• Electrification business accounted for 31% of total revenue, demonstrating flexibility in responding to evolving global vehicle demand

SEOUL, South Korea, July 31, 2026 /PRNewswire/ -- Hanon Systems, a leading global automotive thermal management supplier and a subsidiary of Hankook & Company Group, today announced its financial results for the second quarter of 2026.

The company reported consolidated revenue of KRW 2.87 trillion and operating profit of KRW 103.7 billion for the second quarter of 2026. For the first half of the year, cumulative revenue reached KRW 5.62 trillion, representing a 2.7% increase year-on-year. Supported by favorable foreign exchange effects and increased supply of electrification components to European customers, Hanon Systems achieved a first-half operating profit of KRW 200.9 billion. The company also returned to net profitability through improved operational efficiency following global restructuring efforts.

Hanon Systems continued to strengthen its cost competitiveness by reducing its COGS ratio to 89.3% in the first half of 2026. Through company-wide cost optimization initiatives, including material cost management, logistics efficiency improvements, and structural enhancements, the company mitigated the impact of ongoing cost pressures and a challenging operating environment. The company will continue to strengthen its cost competitiveness through ongoing operational improvements and disciplined cost management.

The electrification business represented 31% of total revenue, supported by increased supply to European customers. Leveraging a diversified product portfolio covering internal combustion engine vehicles, hybrids, and battery electric vehicles, Hanon Systems continues to respond effectively to changing market conditions and evolving global demand for electrified mobility solutions.

Soo-Il Lee, Vice Chairman and Chief Executive Officer of Hanon Systems stated, "We have enhanced our operational excellence through company-wide efforts to improve operational efficiency and implement structural improvements despite ongoing global cost pressures. Going forward, we will continue to build long-term competitiveness and pursue sustainable growth, by reinforcing our core capabilities while advancing new growth opportunities based on our automotive thermal management expertise."

About Hanon Systems

Hanon Systems, founded in 1986, is a global leader in thermal management solutions. In January 2025, it became a subsidiary of Hankook & Company Group. Its offering includes a wide range of solutions in the areas of heating, ventilation and air conditioning, powertrain cooling, compressor, fluid transport, and electronics and fluid pressure. The company currently operates 50 manufacturing sites and three regional innovation centers and employs more than 20,000 people across 21 countries. To learn more, visit hanonsystems.com.

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SOURCE Hanon Systems