Nexen reports record sales
Nexen Tire has announced its financial results for the first quarter of 2025, reporting record revenue of 771.2 billion won ($550 million), a 13.7% increase from the same period last year and above analysts' expectations. Operating profit was 40.7 billion won ($29 million).
According to Nexen, the strong performance was driven by the expansion of production capacity and the growth of high-margin products, such as tires with a diameter of 18 inches or more. The company increased the capacity of its plant in the Czech Republic and also expanded supplies to the original equipment segment for major automakers, which "improved profitability despite industry uncertainties".
In Europe, according to Nexen, demand in the replacement market has remained stable since the second half of last year, and sales of winter and all-season tires have increased in the region. Europe accounted for 316.5 billion won ($230 million) or 41% of the manufacturer's revenue in the first quarter of 2025.
It is reported that the growth in sales in the European market is due to the expansion of production capacity and supplies of tires for premium-class vehicles, and also due to the improvement of brand recognition through sports marketing. Since 2016, Nexen has been cooperating with major premium automotive brands in Europe, which "naturally increases sales in the replacement market as well".
In the first three months of 2025, freight rates, which rose in 2024 due to the geopolitical situation and increased exports to the US ahead of the introduction of new import duties in the country, returned to the level of the same period last year. At the same time, raw material prices, primarily natural and synthetic rubber, remain high due to stable demand.
In the future, Nexen intends to increase its competitiveness in conditions of economic instability through regional initiatives. Thus, in Europe, the company plans to continue increasing the capacity of the Czech plant, in the US it will "flexibly respond to the introduction of new import duties by redirecting supplies and adjusting prices", and in Japan and Australia it will use local warehouses to increase sales.
In contrast to a number of other companies, Nexen intends to offer the same tires for vehicles with internal combustion engines and electric vehicles, since "due to optimal characteristics such as handling, braking and noise reduction, they are suitable for all vehicles, regardless of their type".
"Despite constant currency fluctuations and uncertainties related to new tariffs, our long-term efforts to expand capacity and strengthen the brand are paying off, allowing us to continue our development," said Travis Kang, CEO of Nexen. "We will continue to strengthen our competitiveness in the global market through customer-oriented strategies and regional initiatives".