Hanon Systems reported third-quarter revenue of KRW 2.66 trillion and an operating profit of KRW 120.6 billion, according to results the company published. Operating profit rose 26.6% from a year earlier and 16.3% from the second quarter, putting the operating margin at 4.5%. Revenue for the three months was 1.8% lower year on year.
Nine-month totals
Cumulative revenue for the first nine months of 2026 reached KRW 8.2804 trillion, up 1.2% on the same period a year earlier, while cumulative operating profit rose 77.9% to KRW 321.5 billion. The company said its cost of goods sold ratio improved 0.6 percentage points in the quarter, from 89.1% to 88.5%, and its selling, general and administrative expense ratio from 7.3% to 7.0%. Over the nine months the cost of goods sold ratio moved from 91.1% to 89.1%.
Electrification share
Electrification accounted for 33% of revenue in the third quarter, up from 31% in the second. The company said sales in Europe increased, and attributed the fall in consolidated revenue to lower volumes following production disruptions at a major domestic customer.
Beyond automotive
Hanon Systems said it intends a full market launch of its aftermarket business by 2026, has begun domestic sales through "T-Station" and has taken an initial order from European parts distributor Inter Cars. It is also examining off-road applications including agricultural machinery, construction equipment and defense systems, and developing solutions for energy storage systems, power conversion systems and solid-state transformers. The company said it is entering thermal management for AI data centre servers in phases. Vice Chairman and CEO Soo Il Lee said the company would keep responding to changes in the electrification market and look for growth opportunities from its thermal management work.