Hanon Systems Q1 2026 Turnaround: Debt Ratio Improves, AA- Credit Rating Maintained
**Q1 2026 Turnaround**: Sales KRW 2,748.2B (+5% YoY), OP KRW 97.2B, Net profit (controlling) KRW 66.6B, compared to full-year net loss of KRW 198.5B in FY2025.
**Improved Financial Structure**: Debt ratio 164.6% (vs 168.1% at end-2025, 254.2% at end-2024), credit rating AA- (stable) maintained.
**Post-report Funding**: Issued two corporate bonds totaling KRW 220B (16-1: KRW 100B at 4.108%, 16-2: KRW 120B at 4.316%) rated AA-.
**Subsidiary Merger**: Decision to absorb Hanon Systems EFP Korea (effective July 1, 2026).
**Global Competitiveness**: Ranked 39th in Automotive News global parts suppliers (up from 41st), sales USD 7.3B.
**Key Customers**: Hyundai Motor 19.8%, Hyundai Mobis 20.6%, Ford 9.8% (top 3 account for 50.2%).
**Contingent Liabilities**: Ongoing lawsuits including worker status confirmation (deemed not material).