Hanwha Solutions (009830) Q3 2024 earnings summary

Executive summary

• Q3 2024 consolidated sales rose 4% quarter-on-quarter to KRW 2,773.3 billion, driven by increased power generation asset development in Renewable Energy.

• Operating loss narrowed to KRW 81 billion, with net income at negative KRW 387.7 billion.

• Profitability improved due to better performance in renewable energy development assets.

• The company is focusing on sustainable growth through differentiated technology and innovation in energy and materials.

Financial highlights

• Total assets for non-financial businesses increased by KRW 3,741.2 billion from year-end to KRW 27,251.6 billion.

• Cash and cash equivalents rose by KRW 53.4 billion to KRW 2,135.4 billion.

• Net debt increased by KRW 3,044.6 billion to KRW 10,312.5 billion as of Q3 2024.

• EBITDA for 3Q24: ₩989 billion, up 57.5% QoQ.

• Operating margin improved to -2.9% from -4.0% in the previous quarter.

Outlook and guidance

• Q4 is expected to see a turnaround in Renewable Energy, with KRW 1.2 trillion in power generation asset sales anticipated.

• Annual module sales guidance adjusted from 9 GW to 8 GW due to a temporary power outage at the U.S. Dalton facility.

• AMPC annual guidance remains at KRW 500–600 billion, with Q4 expected to contribute KRW 140–240 billion.

• Full operation of the new Cartersville facility is now expected in the second half of 2025 due to construction delays.

• Renewable energy expected to grow in the US and Europe, driven by IRA guidelines and stable interest rates.