NEXEN TIRE reported KRW 814.8 billion in third-quarter 2026 revenue and KRW 18.1 billion in operating profit, announced on November 4 in Seoul, South Korea. Revenue rose 4.4% year-on-year and marked the fourth consecutive quarter above KRW 800 billion, despite slowing demand and rising raw material prices.
Europe leads regional growth
The company said third-quarter growth was driven by higher sales of high-value-added products and strong sales in Europe. Revenue in Europe reached KRW 349.1 billion, up 8.8% year-on-year, making it NEXEN TIRE's largest market at 43% of total revenue. North America accounted for 21%, Korea for 18% and other regions for 18%.
High-inch share continues to climb
NEXEN TIRE continued to improve its product mix, centered on high-inch, all-weather and winter tires. The sales mix of 18-inch and above tires rose to 41.5%, up 3.4 percentage points year-on-year and 2.7 percentage points quarter-on-quarter. In Europe, the high-inch share climbed 7.3 percentage points year-on-year to 32.2%, while in the US it reached 51.1%.
All-weather and winter momentum
All-weather (3PMSF All-season) and winter tires maintained their growth on the back of new regional product launches. For the first nine months of the year, revenue rose 31.3% year-on-year for all-weather tires and 11.7% for winter tires. The company credited the introduction of the WINGUARD Sport 3 winter tire in Europe and the launch of the N'BLUE 4Season 2 all-weather tire in markets including Korea and the US.
OE business holds up
The original equipment (OE) business remained strong. Despite slowing growth in the OE market amid weak global demand for new vehicles, along with exchange rate volatility and shifting trade conditions in major economies, NEXEN TIRE has continued to win new OE supply from global automakers, including premium brands.
Costs and the strong won weigh on profit
Cost pressures and the strong Korean won weighed on profitability. Raw material prices and ocean freight rates rose due to external factors such as the conflict in the Middle East, pushing the cost-of-sales ratio up to 74.0%, a 2.6 percentage point increase from the same period last year. Once raw material and ocean freight costs stabilize, NEXEN TIRE expects its improved product mix to become a key driver of profitability.
Preparing for EU regulations
The company also outlined its response to global environmental regulations. To prepare for the EU Deforestation Regulation (EUDR) and the Empowering Consumers for the Green Transition Directive (ECGT), NEXEN TIRE is building a supply chain management system and reviewing compliance for all its products and marketing initiatives. In October, the company earned a Gold Medal from EcoVadis, a global sustainability rating agency, for the third year in a row.
"Despite the unfavorable external environment, we have maintained top-line growth thanks to the expansion of high-value-added products and our performance in Europe," said John Bosco (Hyeon Suk) Kim, CEO of NEXEN TIRE. "We will continue to improve our product mix centered on all-weather, winter and high-inch tires, and respond proactively to global regulations to regain profitability."
More information is available on the NEXEN TIRE website.
