Hanon Systems Announces Third Quarter 2026 Financial Results

• Revenue reached KRW 2.66 trillion, with operating profit of KRW 120.6 billion; cumulative operating profit increased 77.9% year-on-year
• Operating margin reached 4.5%, supported by enhanced operational efficiency and continued cost-improvement initiatives
• Electrification increased to 33% of total revenue while the company continues to strengthen the foundation for mid- to long-term growth

SEOUL, South Korea, Nov. 5, 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 third quarter of 2026.

The company reported consolidated revenue of KRW 2.66 trillion and an operating profit of KRW 120.6 billion. Although revenue declined slightly by 1.8% year-on-year, reflecting temporary volume adjustments by customers and exchange fluctuations, operating profit increased by 26.6% year-on-year and 16.3% quarter-on-quarter, bringing the operating margin to 4.5%. For the first nine months of the year, cumulative revenue reached KRW 8.2804 trillion, up 1.2% year-on-year, while cumulative operating profit increased 77.9% to KRW 321.5 billion, demonstrating a significant improvement in profitability.

Hanon Systems' continued efforts to strengthen cost competitiveness through operational efficiency are delivering tangible results, despite ongoing demand volatility in the global automotive market. In the third quarter, the cost of goods sold (COGS) ratio improved by 0.6 percentage points, declining from 89.1% to 88.5%. The selling, general, and administrative (SG&A) expense ratio also decreased from 7.3% to 7.0%. For the first nine months of the year, the cumulative COGS ratio improved by 2.0 percentage points, decreasing from 91.1% to 89.1%, reflecting the positive impact of company-wide efforts to enhance operational efficiency.

Although sales in Europe increased, consolidated revenue declined by 1.8% year-on-year, primarily due to a lower sales volume resulting from production disruptions at a major domestic customer. Meanwhile, the share of revenue from electrification increased from 31% in the second quarter to 33% in the third quarter. The company will continue to strengthen its business competitiveness by addressing evolving global market demands and leveraging its comprehensive portfolio of thermal management solutions.

Hanon Systems is also pursuing business diversification, leveraging the technical expertise and global operational capabilities developed through its core automotive thermal management business. The company is advancing its aftermarket business, with a full market launch planned by 2026. It has already initiated product sales in the domestic market through "T-Station" and is accelerating the expansion of global sales channels. A key milestone in this effort was securing an initial order from Inter Cars, a leading automotive parts distributor in Europe. In addition, the company is exploring opportunities to extend its thermal management technologies into the off-road mobility sector, including agricultural machinery, construction equipment, and defense systems.

In addition to its core automotive business, Hanon Systems is also expanding its technology portfolio to secure new growth opportunities in other industries. Building on its established thermal management expertise, the company has begun developing solutions for energy storage systems (ESS), power conversion systems (PCS), and solid-state transformers (SST). At the same time, the company is taking a phased approach to entering the thermal management market for AI data center servers, while actively identifying business opportunities to establish a foundation for mid- to long-term growth.

Vice Chairman and CEO Soo Il Lee stated, "Despite ongoing uncertainties in the global market, our continued focus on fundamental process improvements and operational efficiency has enabled us to maintain stable business performance." He added, "Going forward, we will continue to respond to changes in the electrification market, identify new growth opportunities that leverage our thermal management expertise, and further strengthen the foundation for sustainable growth."

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