Hanon Systems Q2 operating profit surges 61.3% to ₩103.7 billion

Hanon Systems posted a sharp improvement in second-quarter profitability, with consolidated operating profit rising 61.3% year over year to ₩103.7 billion ($72.2 million) on revenue of ₩2.88 trillion ($2.0 billion), according to a regulatory filing on the 31st. Revenue was up 0.6% from ₩2.86 trillion a year earlier, indicating the company expanded earnings while keeping its top line broadly stable. The first-half figures also pointed to a recovery. Cumulative revenue rose 2.7% year over year to ₩5.62 trillion ($3.9 billion), operating profit reached ₩200.9 billion, and net income turned positive. Hanon Systems said the gains were driven by currency effects, higher electrification volumes from European customers including battery electric vehicles and hybrids, and stronger operational efficiency from global restructuring. Electrification accounted for 31% of total revenue as supply to European customers increased. The company said that reflected a portfolio able to respond flexibly to shifts in global demand across internal combustion engine vehicles, hybrids and battery electric vehicles. Cost discipline also improved. Hanon Systems lowered its first-half COGS (cost of goods sold) ratio to 89.3% through company-wide cost reductions, including efficiency gains in materials and transportation, as it continued a profitability-focused management overhaul after joining Hankook & Company Group last year. Vice Chairman and CEO Lee Soo-il said the company had built a foundation for performance recovery despite global cost pressures and would keep strengthening internal fundamentals for an uncertain external environment while pursuing sustainable growth through new businesses based on automotive thermal management technology. Market attention is now on whether the combination of restructuring and cost-cutting can accelerate the profitability improvement further, even as the broader auto sector adjusts the pace of electrification.