Nexen Capitalizes on High-Inch Replacement Growth

Nexen Tire’s growing share of 18-inch and larger fitments enables Canadian tyre retailers to drive higher revenue per bay amid escalating freight costs.

South Korean manufacturer Nexen Tire posted third-quarter 2026 revenue of $606.2 million USD, marking a 4.4 per cent year-over-year increase and generating an operating profit of $13.5 million USD. Top-line expansion was driven primarily by strong European demand and heightened wholesale shipments of high-value-added product lines, specifically winter and severe-snow-rated all-weather designs.

For Canadian commercial tyre distributors, automotive service directors, and retail tire store owners, shifting customer demand toward larger wheel assemblies directly impacts bay revenue. Fitments measuring 18 inches and above accounted for 41.5 per cent of total corporate sales, representing 51.1 per cent of US deliveries. Capitalizing on this large-diameter transition allows service advisors to lift ticket averages during critical seasonal changeover periods.

According to Nexen Tire CEO John Bosco Kim, external pressures—including rising raw material prices and elevated ocean container shipping rates—pushed the company’s cost-of-sales ratio to 74 per cent. For Canadian tyre specialists navigating international supply volatility, carrying robust allocations of 3PMSF-certified all-weather lines remains a strategic operational hedge to capture steady seasonal changeover profits.