PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩200 per share · Prices as of the 2026-10-02 close
Nexen Tire's revenue topped 3 trillion won for the first time in 2025, but the absence of a US production base and a revised anti-dumping duty rate drove Q2 2026 net profit to near zero, highlighting rising earnings volatility.
Nexen swung from an operating loss in 2022 to three straight years of operating profit in 2023-2025, but operating margin peaked at 6.9% in 2023 and slipped to 6.0% in 2024 and 5.3% in 2025.
Q2 2026 revenue hit a quarterly record of 891.3 billion won, but operating profit fell 19.5% to 34.3 billion won and net profit attributable to owners collapsed 98.9% to just 0.2 billion won.
In July 2026, the US Department of Commerce finalized an administrative review that set Nexen Tire's anti-dumping dumping margin at 8.02%, up from a preliminary 5.57%.
Unlike Hankook Tire & Technology and Kumho Tire, Nexen has no US production plant, leaving it more exposed to tariffs and freight swings; its planned fifth plant, long earmarked for the US, was put under renewed review in August 2026.
Europe sales topped 400 billion won for the first time in Q2 2026, and the mix of high-inch (18-inch and above) tires rose to 38.8%, showing continued improvement in product and regional mix.
Nexen Tire is Korea's third-largest tire maker, supplying passenger car and light-truck (PCLT) tires to both original-equipment (OE) and replacement (RE) markets.
Its production footprint consists of four plants in Yangsan and Changnyeong in Korea, Qingdao in China, and Zatec in the Czech Republic; unlike rivals Hankook Tire & Technology and Kumho Tire, it operates no plant in the United States.
Europe has grown into the company's largest market, driven by expanded OE supply to premium brands such as Mercedes-Benz and BMW and diversification into replacement markets including the UK and Turkey.
High-inch tires of 18 inches or above, which carry higher unit prices, made up 38.8% of sales in Q2 2026, up 3.6 percentage points from a year earlier. On electrification, the company supplies OE tires for EV models including the Ioniq 6, EV3 and EV9 in Korea and recently began supplying China's BYD.
In North America it relies on four regional distribution centers rather than local production, and is expanding retail channels such as Walmart while increasing high-inch tire supply.
Domestic rivals Hankook Tire & Technology and Kumho Tire are far ahead in both scale and profitability, with recent quarterly tire-segment operating margins around 17% for Hankook and 14% for Kumho versus low single digits for Nexen.
A long-discussed fifth global plant, previously earmarked for the US Southeast, is now under renewed review to also consider other regions given rising US construction and labor costs.
| Quarter | Revenue | Operating profit | Op. margin |
|---|---|---|---|
| 2025Q2 | ₩804.7B | ₩42.6B | 5.3% |
| 2025Q3 | ₩780.7B | ₩46.5B | 6.0% |
| 2025Q4 | ₩833.1B | ₩40.5B | 4.9% |
| 2026Q1 | ₩838.3B | ₩54.2B | 6.5% |
| 2026Q2 | ₩891.3B | ₩34.3B | 3.9% |
| Year | Revenue | Operating profit | Net income (parent) | Op. margin | ROE | Debt-to-equity |
|---|---|---|---|---|---|---|
| 2022 | ₩2.6T | -₩54.3B | -₩27.8B | −2.1% | −1.7% | 147.1% |
| 2023 | ₩2.7T | ₩187B | ₩102.8B | 6.9% | 6.1% | 148.3% |
| 2024 | ₩2.8T | ₩172.1B | ₩126.4B | 6.0% | 6.8% | 144.4% |
| 2025 | ₩3.2T | ₩170.3B | ₩150.8B | 5.3% | 7.4% | 129.2% |
Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04
Nexen Tire's consolidated revenue rose for four straight years, from 2.597 trillion won in 2022 to 2.702 trillion in 2023, 2.848 trillion in 2024 and 3.190 trillion in 2025, crossing 3 trillion won for the first time.
Operating profit swung from a 54.3 billion won loss in 2022 to three consecutive years of profit - 187.0 billion won in 2023, 172.1 billion won in 2024 and 170.3 billion won in 2025 - though the absolute figure peaked in 2023 and edged down thereafter.
Net profit attributable to owners followed the same arc, moving from a 27.8 billion won loss in 2022 to 102.8 billion won in 2023, 126.4 billion won in 2024 and 150.8 billion won in 2025.
Operating margin peaked at 6.9% in 2023 before slipping to 6.0% in 2024 and 5.3% in 2025, showing margin compression even as revenue kept climbing.
Over the most recent four-quarter window (Q3 2025 to Q2 2026), revenue rose steadily from 780.7 billion won to 833.1 billion won, 838.3 billion won and a record 891.3 billion won in Q2 2026.
Operating profit, however, swung from 46.5 billion won to 40.5 billion won, 54.2 billion won and back down to 34.3 billion won, with the Q2 2026 operating margin of about 3.9% roughly half the 6.5% level of the prior quarter.
Net profit attributable to owners was solid at 54.7 billion won in Q3 2025 and 62.0 billion won in Q1 2026 before collapsing to just 0.2 billion won in Q2 2026, which the company attributed to higher material and freight costs, a one-off cost tied to a higher US anti-dumping duty rate, weaker results in higher-priced regions, and a mix shift toward OE volume.
Even so, Q2 2026 revenue itself set a quarterly record, led by Europe sales that reached 407.2 billion won for the first time.
Profitability among Korea's three listed tire makers diverged sharply in Q2 2026: Hankook Tire & Technology's tire segment posted an operating margin near 17.2%, Kumho Tire around 13.7%, while Nexen Tire trailed at about 3.9%.
The key differentiator is US production capacity - Hankook is expanding its Tennessee plant and Kumho already operates a plant in Georgia, while Nexen has no US manufacturing base and must export from Korea, China or the Czech Republic.
This leaves Nexen more exposed to tariff and freight swings; in July 2026 the US Department of Commerce finalized an administrative review setting Nexen's anti-dumping dumping margin at 8.02% (up from a preliminary 5.57%) versus Hankook's finalized 13.03%.
Separately, the US International Trade Commission opened a five-year sunset review on whether to maintain anti-dumping measures on Korean tires altogether, with a decision still pending.
In Europe, EU anti-dumping duties on Chinese-made tires weighed more heavily on Nexen and Kumho, which sourced a larger share of their Europe-bound volume from China than Hankook did; Nexen has since cut the China-sourced share of its Europe sales from 15% to about 4%.
Demand for high-inch and EV-compatible tires is rising industry-wide, but Nexen's Q2 2026 high-inch mix of 38.8% still trailed Hankook's 49.5% and Kumho's 47%. Rising rubber, butadiene and ocean-freight costs tied to Middle East tensions have also pressured margins across the sector.
The company has said stable ramp-up of its expanded Czech Republic plant and a reorganization of North American distribution channels should translate into visible earnings improvement.
The Zatec plant's capacity was doubled from about 5.5 million to 11 million tires per year following a second-phase expansion, providing the base for further Europe volume growth.
In North America, Nexen plans to improve its distribution mix by expanding large retail channels such as Walmart and increasing supply of high-inch tires.
On electrification, the company is expanding OE supply to new EV models including Hyundai's Staria EV and to China's BYD, while using AI-based tire performance prediction technology to pursue more premium OE customers.
The long-discussed fifth global plant, previously focused on the US Southeast, was put under renewed review in August 2026 via a corrective filing that broadened the search to "North America and other global regions." The company has said the US has not been ruled out entirely and that its 2028-2029 target start date still leaves room to decide.
However, the outcome of the US ITC's pending anti-dumping sunset review and any further adjustment to EU tariffs on Chinese-made tires remain key variables shaping future cost structure and pricing power.
Nexen Tire's shares now trade in the period since the company's net loss years turned to sustained profit, and the earnings multiple based on the most recent four quarters of profit sits below where it stood during the loss-making 2022 period.
On a price-to-book basis, the stock has continued to trade at a discount to net asset value over multiple years. Dividends have been paid consistently since the return to profitability, though the resulting yield appears comparatively modest next to larger competitors that operate US production plants.
Because quarterly profit has swung sharply - a strong first quarter of 2026 followed by a near-vanished net profit in the second quarter - any multiple built on a single recent quarter should be read with caution.
The wide gap in operating margin versus Hankook Tire & Technology and Kumho Tire is one factor behind how the market prices each company's shares relative to book value.
PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04
Europe sales reached 407.2 billion won in Q2 2026, topping 400 billion won for the first time in a single quarter. A second-phase expansion at the Zatec plant in the Czech Republic doubled capacity to 11 million tires per year, providing room for further volume growth.
High-inch tires of 18 inches or above rose to 38.8% of sales, up 3.6 percentage points year over year, improving the product mix.
Consolidated revenue rose for four straight years, from 2.597 trillion won in 2022 to 3.190 trillion won in 2025, crossing 3 trillion won for the first time. Over the same period the company moved from an operating loss to an operating profit and from a net loss to a growing net profit attributable to owners. Diversification of domestic and overseas automaker customers underpins this top-line growth.
Domestically, Nexen has expanded OE tire supply for EV models including the Ioniq 6, EV3 and EV9, and recently began supplying China's BYD. In Europe it continues to broaden OE supply to premium brands such as Mercedes-Benz and BMW.
The company is also using AI-based tire performance prediction technology to pursue additional premium automaker customers.
Q2 2026 operating margin of about 3.9% lagged far behind Hankook Tire & Technology's roughly 17.2% and Kumho Tire's roughly 13.7%. Lacking a US production base, Nexen must export from Korea, China or the Czech Republic, which relatively magnifies tariff and freight burdens. This gap has recurred over several recent quarters.
In the US Department of Commerce's July 2026 administrative review, Nexen's dumping margin was raised from a preliminary 5.57% to a final 8.02%. EU anti-dumping duties on Chinese-made tires also weighed relatively more heavily on Nexen given its higher China-sourced production share.
The outcome of the US ITC's five-year sunset review on whether to maintain anti-dumping measures altogether has not yet been decided.
The US plant plan, first announced in 2023, was shelved once in 2024, revisited, and then broadened again in August 2026 to include other regions. With the site still unconfirmed after several years, concerns persist that Nexen is falling behind rivals in expanding local production capacity.
US anti-dumping duty rates are recalculated annually through administrative reviews, and the July 2026 determination raised Nexen's dumping margin to 8.02%. A separate five-year sunset review by the ITC will determine whether the anti-dumping measures continue at all.
EU moves to impose duties on Chinese-made tires add a further variable given the size of Nexen's Europe revenue.
Middle East tensions have pushed up prices for raw materials such as natural rubber and butadiene as well as the Shanghai Containerized Freight Index. Tires, being bulky, are considered particularly sensitive to freight-rate increases. If cost increases cannot be fully passed through in pricing, margin pressure could persist.
The absence of a US production base continues to leave the company relatively more exposed to tariff, currency and freight swings. Selection of a site for the fifth plant has remained unresolved for several years, compounded by existing investment burdens from the Czech plant expansion and the Magok R&D center. Delays in committing to major new investment could affect medium- to long-term supply-chain competitiveness.
Nexen Tire's Q3 2026 provisional earnings are due. Watch whether operating margin recovers from the Q2 low of about 3.9% and whether tariff-related one-off costs recur.
Watch for further disclosures or announcements on the fifth plant site decision, whose review scope was broadened in August 2026 to include regions beyond the US.
Track the progress of the US ITC's five-year sunset review on whether to maintain anti-dumping measures on Korean tires. The outcome could materially change the tariff burden on volume exported to the US.
Watch for any further adjustment to EU anti-dumping duties on Chinese-made tires and for further changes in Nexen's China-sourced share of Europe supply, currently around 4%.
Nexen Tire moved out of a 2022 loss into three consecutive years of operating profit through 2025, crossing 3 trillion won in revenue for the first time, though operating margin has drifted lower since peaking in 2023.
Q2 2026 set a revenue record even as operating and net profit both fell sharply, hit by a one-off cost tied to a higher US anti-dumping duty rate together with rising raw material and freight costs.
Product and regional mix continue to improve, with Europe sales topping 400 billion won for the first time and high-inch tire share rising, but the structural absence of a US production base is cited as a key reason for the widening profitability gap versus Hankook Tire & Technology and Kumho Tire.
The long-considered fifth plant, previously focused on the US, was put under renewed review in August 2026 with no conclusion yet reached.
The pending US ITC sunset review and any adjustment to EU tariffs on Chinese-made tires remain key variables that will shape the company's cost structure and pace of margin recovery. Readers should track upcoming quarterly results and trade-policy developments together before drawing conclusions.
Report written 2026-09-05 · Data as of 2026-09-04
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