Hanwha Solutions (009830) Q4 2024 earnings summary

Executive summary

• Q4 2024 consolidated revenue surged 69% quarter-on-quarter to KRW 46,429 billion, with operating profit turning positive at KRW 1,070 billion, driven by higher module sales, development asset revenue, and IRA gains.

• Full-year 2024 revenue was KRW 123,940 billion, down 5.2% year-over-year, with an operating loss of KRW 3,002 billion and net loss of KRW 13,424 billion, reflecting market weakness and one-time expenses.

• IRA implementation contributed KRW 5,551 billion to FY24 operating profit and KRW 1,901 billion in Q4.

Financial highlights

• Q4 pretax profit was negative KRW 276.6 billion; net profit was negative KRW 124.4 billion, while Q4 EBITDA reached KRW 2,875 billion, up 190% sequentially.

• FY24 EBITDA was KRW 3,981 billion, down 66.5% year-over-year; operating margin for FY24 was -2.4%.

• Total assets at year-end 2024 were KRW 300,604 billion, up KRW 52,695 billion year-over-year.

• Cash and cash equivalents increased to KRW 2,242 billion; borrowings rose to KRW 12,588 billion.

Outlook and guidance

• Q1 2025 revenue in Renewables expected to improve due to absence of prior one-time expenses, but development asset sales and EPC revenue anticipated to decline sequentially.

• Annual 2025 revenue for development asset sales and EPC projected at KRW 4 trillion, with Q1 revenue around KRW 500 billion.

• Total shipment guidance for 2025 is over 9 GW, with N-type modules targeted at 30% of volume.

• CapEx for 2025 expected at KRW 2 trillion, mainly for renewables.

• Renewable energy market expected to grow, with U.S. market seen at 40GW+ and Europe at 70GW+ in 2025.