Hanwha Solutions (009830) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue fell 33% QoQ to KRW 3,094.5 billion, but was up 31.5% year-over-year; decline mainly due to power generation asset sales and lower EPC and module shipments.

• Operating profit dropped 72% QoQ to KRW 30.3 billion, swinging to profit from a loss a year ago, impacted by chemical division maintenance costs.

• Net profit was negative KRW 30.2 billion, a significant recovery from larger losses in prior quarters.

• IRA implementation contributed KRW 1,839 billion to operating profit in Q1 2025.

• Strategic focus remains on sustainable growth through differentiated technology and innovation in energy and materials.

Financial highlights

• Total assets rose by KRW 444.7 billion to KRW 30,481 billion as of Q1 2025.

• Cash and cash equivalents decreased by KRW 215 billion to KRW 2,095 billion.

• Total liabilities increased by KRW 612 billion to KRW 20,042 billion; borrowings up KRW 1,067 billion to KRW 13,789 billion.

• EBITDA for Q1 2025 was KRW 2,228 billion, down 22.5% sequentially, with a margin of 7.2%.

• Operating margin was 1% in Q1 2025, down from 2.3% in Q4 2024 but up from -9.1% in Q1 2024.

Key financial ratios and metrics

• Debt-to-equity ratio increased by 9 percentage points to 192%.

• Net debt-to-equity ratio rose by 14 percentage points to 112%.

• ROE remained negative at -1.2% for Q1 2025.

• CAPEX for Q1 2025 was KRW 942 billion.