Hanwha Solutions (009830) Q4 2025 earnings summary

Executive summary

• Q4 consolidated sales rose 12.3% quarter-over-quarter to KRW 3,778.3 billion, led by EPC business growth in the Renewable Division, but operating loss widened to -KRW 478.3 billion due to lower profitability and significant one-off expenses.

• Full-year 2025 consolidated sales increased 8% year-over-year to KRW 13,354.4 billion (133,544억원), but operating loss persisted at -KRW 353.3 billion (-3,533억원), mainly from weak chemical markets.

• Net profit for Q4 was -KRW 404.8 billion; full-year net profit was -KRW 608.9 billion (-6,089억원), an improvement from -KRW 1,369 billion in 2024.

Financial highlights

• Q4 included approximately KRW 360 billion in one-off expenses, such as inventory write-offs, impairment losses, and business withdrawal costs.

• One-off gains of KRW 640 billion, mainly from asset disposals, resulted in a net positive one-off impact of KRW 280 billion.

• As of end-2025, total assets reached KRW 33,122.2 billion (331,222억원), with liabilities of KRW 21,817.2 billion and equity of KRW 11,305 billion.

• Cash and cash equivalents increased to KRW 2,665.8 billion; total debt rose to KRW 14,977.3 billion.

• FY2025 EBITDA was KRW 430.7 billion, up 5.6% year-over-year, but EBITDA margin slightly decreased to 3.2%.

Outlook and guidance

• Renewable Energy Division expects a return to profitability in Q1 2026, driven by normalized U.S. operations and higher ASPs.

• 2026 sales volume guidance is approximately 9 GW, up from 6 GW in 2025.

• AMPC recognition projected at KRW 950 billion in 2026, with full value chain benefits in the second half.

• Development asset sales and EPC revenue guidance for 2026 is KRW 4–5 trillion.

• Residential Energy business expects narrowing losses in Q1 and installation growth to 186 MW in 2026.

• CapEx for 2026 is expected to decline to KRW 1.2 trillion, with most allocated to renewable energy.

• Renewable energy market expected to grow to over 40GW in the US and maintain 70GW+ in Europe, with policy risks and tax changes impacting growth.

• Chemical segment faces continued oversupply, with LDPE demand stable but LLDPE competition intensifying.