[New Year’s Address] Hanon Systems Vice Chairman Lee Suil: “Targeting 11 Trillion Won in Sales and 5% Operating Margin This Year”

2026 New Year’s Address
Aiming for Simultaneous Recovery in Sales Growth and Profitability
Securing Momentum Through Expansion into New Markets Such as AI and Aftermarket

Lee Suil, Vice Chairman of Hanon Systems, presented a mid- to long-term growth strategy in his New Year’s address on January 5, setting targets for 2026 of 11 trillion won in sales and a 5% operating margin. Hanon Systems plans to strengthen its real growth momentum by developing new businesses and expanding its global aftermarket operations.

On this day, Vice Chairman Lee announced these goals in his New Year’s address to global employees. After achieving annual sales of 10 trillion won for the first time last year, Hanon Systems aims to reach 11 trillion won in sales this year.

To secure an operating margin (EBIT) of around 5%, the company plans to improve both profitability and cash flow by enhancing its cost structure and operational efficiency, while establishing an execution-focused management policy. Once the ongoing paid-in capital increase is completed, the debt ratio, which stood at approximately 246% at the end of the third quarter, is expected to improve to about 164%.

The company is also accelerating its strategic transformation for future growth. Over the past year, Hanon Systems established a dedicated software organization and restructured its global research and development (R&D) teams, strengthening the efficiency of technology development and its collaborative framework.

In particular, in a market environment where various powertrains such as battery electric vehicles (BEV), hybrids, plug-in hybrids (PHEV), and extended-range electric vehicles (EREV) coexist, Hanon Systems is positioning its technological and software capabilities, which can respond to automakers’ multi-powertrain strategies, as the core pillars for mid- to long-term growth.

Lee Suil, Vice Chairman of Hanon Systems. Provided by Hanon Systems

In addition, the company is actively seeking new business opportunities in the era of AI. With the rapid increase in power and thermal management demand driven by the expansion of AI data centers, Hanon Systems is reviewing new business opportunities based on its extensive experience in thermal management technologies, such as liquid cooling systems for data centers and thermal management solutions for energy storage systems (ESS).

The company also plans to expand its aftermarket sales. Through its participation in AAPEX, the largest aftermarket exhibition in North America, and major aftermarket exhibitions in the Middle East in November last year, Hanon Systems confirmed the market potential. Starting in January 2026, the newly established global aftermarket organization will lead the expansion of this business, with the goal of making a substantial contribution to both sales growth and profitability.

Vice Chairman Lee stated, "If 2025 was a year focused on improving management efficiency and strengthening fundamentals, 2026 will be the year to complete these efforts while executing our established mid- to long-term strategy and translating it into results. We will reinforce our fundamentals based on responsible management and continue sustainable growth by expanding into new businesses."