Nokian Tyres delivered a sharp improvement in second-quarter profitability as higher sales volumes, stronger pricing and lower manufacturing costs boosted earnings, while the company said it is entering a new phase focused on profitable growth after completing its major investment programme.

Net sales rose 10.6 percent year on year to €379.9 million in the April–June quarter, while operating profit more than doubled to €34.8 million from €14.8 million. Segment operating profit increased 71 percent to €45 million, driven by higher sales and improved manufacturing efficiency.

For the first six months of 2026, revenue increased 7.6 percent to €659.6 million, while segment operating profit climbed to €40.7million, more than five times the €7.8 million reported a year earlier. Operating profit returned to positive territory at €17 million, compared with a loss of €21.1 million in the first half of 2025.

"We delivered a strong quarter in line with our strategic ambition," said Paolo Pompei, President and Chief Executive. "Operating profit increased by 136 percent, driven by higher sales volumes and enhanced pricing."

Passenger car tyres lead recovery

The Passenger Car Tyres business remained the principal growth engine, with quarterly sales increasing 13.9 percent to €235 million, while segment operating profit more than doubled to €35.5 million. Heavy Tyres also returned to growth, posting a 10.4 percent increase in sales, although profitability at retail chain Vianor remained under pressure from cost inflation and seasonal factors.

Chief financial officer Timo Koponen said higher sales volumes remained the largest driver of earnings improvement.

"The Passenger Car Tyres continued their very strong performance also in Q2," he said, adding that the business had benefited from improved pricing, a richer product mix and lower raw material costs.

Management also highlighted six consecutive quarters of positive price and mix development, reflecting its strategy of moving further into premium products and larger rim-size tyres.

Romania becomes a strategic growth engine

Nokian Tyres said its new manufacturing facility in Romania is performing ahead of plan and is playing a key role in rebuilding capacity following the exit from Russia.

Sales in Central and Southern Europe rose 31.3 percent during the quarter, supported by higher production from the Romanian plant. "Everything is developing in this area according to plan," Pompei told analysts, referring to the Romanian factory.

He added that the new manufacturing footprint, together with recently launched products, was enabling the company to regain market share.

"We lost a significant amount of sales when we couldn't leverage our manufacturing facility in Russia at the end of 2022. Now, obviously, we are approaching the market with a new spirit, regaining market share in all the key markets where we believe we can be successful."

The company said contract manufacturing would continue to account for around 10 percent of total production, allowing it to focus internal capacity on strategically important products.

Investment phase winds down

Having invested heavily over recent years to rebuild its manufacturing network, Nokian Tyres is now shifting its attention towards cash generation and returns.

Capital expenditure in the first half fell to €24.5 million, compared with €89.7 million a year earlier. The company expects full-year capital expenditure to remain below €100 million, substantially lower than previous years.

"Following the successful completion of our major investment phase, capital expenditure will be somewhat lower this year than in the previous year," Pompei said.

Koponen said lower capital expenditure and stronger earnings had improved free cash flow, although higher receivables linked to increased sales continued to weigh on working capital. He added that net debt declined by €49m during the quarter while liquidity remained strong.

Premium positioning remains central

Nokian Tyres continues to focus on premium products rather than competing in lower-priced market segments.

The company said all-season tyres continued to outperform the broader market, while its flagship Hakkapeliitta 01 winter tyre had received a positive customer response.

Pompei said the strategy remains centred on strengthening brand equity and improving margins.

"We keep pushing our premium positioning, strengthening our brand through strong marketing investments, new products, and, in particular, better prices," he said.

Outlook unchanged despite uncertainty

Nokian Tyres maintained its full-year guidance, forecasting revenue growth in 2026 and a segment operating margin of 8–10 percent.

While management expects replacement tyre demand to remain broadly stable, it acknowledged that geopolitical tensions, tariffs and raw material price volatility continue to create uncertainty.

"We continue to focus on executing our strategy, strengthening our premium positioning, and improving profitability," Pompei said. "While there is still work ahead, we are on the right path to deliver profitable growth and create long-term value for all our stakeholders."

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Hankook Tire held its 2026 Design Innovation Day on 30 October at Hankook Technodome, the company’s advanced research and development centre in Yuseong-gu, Daejeon, South Korea. The event, themed ‘Shaping Identity, Sculpting Performance’, gave employees a chance to learn about the tyre maker’s design strategies and major accomplishments.

A central highlight was the company’s first public presentation of a unified product design identity framework covering its principal brands: iON, the world’s first full-lineup tyre brand dedicated to electric vehicles; Ventus, its flagship line and Dynapro, its SUV-focused brand. Hankook Tire also introduced a next-generation product design language for the first time and explained how it will be applied to future products, clarifying each brand’s design direction and creating a consistent approach across the portfolio.

The programme featured three sessions. One addressed design strategies for conveying product performance while preserving brand identity and introduced guidelines for turning ‘invisible performance’ developed during R&D into design elements consumers can recognise, with approaches tailored to different product characteristics. Another session presented the next-generation design language for iON, Ventus and Dynapro, translating each brand’s core values into distinctive design elements. Hankook Tire further shared a framework for collaboration among R&D, product planning, marketing and design teams so they can develop products under unified design standards.

Through the event, Hankook Tire seeks to align design strategies and direction across the organisation, improve product development efficiency and speed decision-making while strengthening global brand recognition and its premium image. The company also aims to bolster design competitiveness in original equipment collaborations with global automakers and in product development for global markets. Hankook Tire continues to earn international design recognition, including three Product Design awards at the 2026 Red Dot Design Awards for Ventus evo, iON AT and Laufenn S FIT2, plus six Design Concept awards comprising two Best of the Best honours and four Red Dot awards.

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Lassa Tyres has introduced the Wintus 3, a new winter tyre engineered for light commercial vehicle operators who depend on reliable, durable performance in harsh cold-weather conditions. The company designed the pattern to address the varied demands of business users whose vehicles are central to their operations.

The Wintus 3 features a new-generation tread pattern, advanced construction and innovative compound technologies, delivering gains over its predecessor that include up to 60 percent longer wear life and a 27 percent reduction in rolling resistance for improved efficiency and more sustainable mobility. It also improves wet braking, snow and ice performance, wet handling and dry braking.

The tyre carries the TÜV SÜD Performance Mark, with independent benchmark testing showing measurable advantages over the competitor average in snow acceleration, snow braking, wet braking, wet cornering, dry braking and fuel and energy efficiency, including improvements exceeding 10 percent in dry braking, wet braking and fuel efficiency.

Offered in 22 sizes spanning 14 to 16 inches, the Wintus 3 will be available in Lassa markets during the 2026 winter season, with size availability varying by market.

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Liberty Tire Recycling has published the industry’s first US company-commissioned lifecycle assessment (LCA) centred on rubber-modified asphalt solutions made from recycled tyres. The study was commissioned by Liberty and carried out by Boundless, applying internationally recognised LCA methodology to evaluate the environmental impacts of the company’s asphalt-related products against conventional alternatives used in asphalt modification.

The company described the assessment as a notable step forward for rubber-modified asphalt. Environmental gains are routinely linked to recycled tyre materials in road building, yet Liberty said this analysis supplies quantified evidence behind such assertions. Greenhouse gas emissions tied to its rubber-modified asphalt solutions were tracked throughout their lifecycle.

Results showed that Liberty's asphalt products carried substantially lower greenhouse gas impacts than conventional SBS polymer modifiers. Recovering and reusing end-of-life tyre materials was also found to deliver environmental benefits exceeding the impacts of processing them. Liberty said the findings give transportation agencies, engineers, contractors and infrastructure stakeholders data-driven insights for choosing materials.

Four products were assessed: crumb rubber and three asphalt additives, namely dry mix rubber additives, a DOT additive and combined micronised rubber powder with the Rheopave additive. Dry mix rubber additives yielded the largest carbon benefit, avoiding up to 0.577 kg CO₂e per pound produced, while the tyre-derived products achieved over 100 percent lower greenhouse gas footprint than traditional SBS modifiers. Each product assessed generated a net environmental benefit, with reductions spanning 0.47 to 0.57 kg of CO₂e per pound.

Liberty said the study helps set a benchmark for measuring and communicating environmental impacts as sustainability gains prominence in infrastructure projects, and that transparent, science-based data will matter increasingly to public agencies and industry leaders weighing performance and environmental goals.

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Avon Tyres will make its second consecutive EICMA appearance this year, using the Milan show to unveil a refreshed motorcycle range and a renewed brand identity to a global audience of riders and trade visitors. The company will occupy Hall 9, Booth U65 at Fiera Milano between 3 and 8 November.

The exhibit reflects Avon's ‘made to be different’ philosophy and presents a focused portfolio spanning sport, touring, adventure, cruiser and classic segments. Avon's return also signals progress within Goodyear's motorcycle portfolio, where, since joining the family of brands in 2022, it has paired longstanding heritage with a modern product strategy and upgraded manufacturing.

Four flagship tyres anchor the display: the Spirit ST for sport-touring, the 3D Supersport for hypersport riders, the Roadrider MKII for classics and the Cobra Chrome for cruiser, touring and custom applications, the latter now offered in additional sizes. They are joined by the Trailrider 2, a new adventure-touring tyre launching in January 2027 that carries the ‘made to blaze your own trail’ message, targets an 80:20 road-to-off-road mix and will come in at least 20 sizes for popular adventure bikes.

Together with the existing Trekrider and Streetrunner, the lineup forms Avon's most comprehensive public display of its motorcycle portfolio to date. EICMA, which drew over 600,000 visitors last year including nearly 43,000 trade professionals from 167 countries, gives the brand a truly global stage for engaging riders, dealers and partners. Public-day attendees can also meet stunt rider Rok Bagoros at the stand on Friday 6 November at 11:30.

Roberto Finetti, Marketing Manager Motorcycle Europe, Goodyear, said, “We’re looking forward to speaking with riders and partners at EICMA about our continued growth plans for Avon. EICMA is the world’s largest motorcycle exhibition and provides the ideal place to showcase our refreshed identity and tyre range under the ‘made to be different’ philosophy.”

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