1. Nexen Tire Q2 IR: What Happened?

Nexen Tire held its Q2 2025 earnings announcement and investor relations (IR) meeting on August 4th, addressing its financial performance and key issues. The company was expected to provide updates on the factors that impacted its Q1 performance, including rising raw material prices, exchange rate fluctuations, and the underperformance of its non-tire segment, as well as its strategies to address these challenges.

2. Why the Q1 Slump?

Despite increased sales, Nexen Tire’s operating profit declined in Q1 2025 due to several factors:

  • Rising Raw Material Prices: Increasing costs of natural and synthetic rubber significantly impacted profitability.
  • Exchange Rate Fluctuations: A stronger won against the dollar and euro negatively affected earnings.
  • Non-tire Segment Underperformance: Weak performance in the non-tire segment contributed to the overall decline in profitability.

3. Key IR Insights and Investment Strategies

Investors should focus on the following key aspects of the Q2 earnings announcement and future outlook:

  • Q2 Performance: Assess whether the impact of raw material prices and exchange rate fluctuations persisted in Q2 and whether the non-tire segment showed signs of improvement.
  • Future Strategies: Pay close attention to Nexen Tire’s mid-to-long-term growth strategies, particularly its plans for eco-friendly technology development and global production expansion.
  • Risk Management: Evaluate Nexen Tire’s strategies for managing external risks such as raw material price volatility, exchange rate fluctuations, global economic slowdown, and geopolitical risks.

4. Action Plan for Investors

Before making any investment decisions, thoroughly review the IR materials and consider all external factors. Short-term investments carry higher volatility; therefore, it’s crucial to evaluate Nexen Tire’s growth potential from a long-term perspective.