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Hanwha Solutions (A009830) investor relations material

Hanwha Solutions Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary30 Jul, 2025

Executive summary

  • Addressed cell quality issues at Korean and Malaysian plants, with normalization expected by August and September respectively.

  • Revenue for 2Q25 increased 0.7% sequentially to 31,172억원, with operating income surging 237% to 1,021억원, marking a return to profitability year-over-year.

  • Adjusted annual module shipment guidance from 9 GW to 7.5 GW due to operational delays, quality issues, and project delays in Europe.

  • Growth driven by improved module spreads and higher sales in renewable energy, while chemical segment losses narrowed due to maintenance effects.

  • Market uncertainty heightened by regulatory changes, including the OBBA Act and AMPC revisions, impacting demand and guidance disclosure.

Financial highlights

  • Q2 module sales volume increased 10% quarter-over-quarter; Q3 sales volume expected to remain flat.

  • EBITDA for 2Q25 reached 2,918억원, up 31% sequentially, with EBITDA margin at 9.4%.

  • Third quarter renewable energy segment expected to post a loss of approximately KRW 100 billion, mainly due to quality issues and reduced ANPC amount.

  • Generation asset sales and EPC revenue guidance for Q3 is KRW 80–90 billion, with full-year target maintained at KRW 4 trillion.

  • Net debt increased to 113,793억원, with net debt-to-equity ratio rising to 105%.

Outlook and guidance

  • No detailed guidance for TPO or residential business due to market uncertainties and pending executive orders.

  • Module ASP expected to decline slightly in Q3 after a one-time increase in Q2; market in wait-and-see mode.

  • Renewable energy market expected to grow, with U.S. and Europe projected at 40GW+ and 70GW+ respectively, despite ongoing price competition.

  • Mass production at Cartersville facility to begin Q4 2025, with sales ramping up in Q1 2026.

  • Chemical segment anticipates gradual demand recovery in China, but oversupply may limit improvement.

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Frequently asked questions

Hanwha Solutions Corporation is a diversified company engaged in renewable energy, chemicals, and advanced materials. The company operates through multiple business segments, including solar energy under Qcells, petrochemicals, and high-performance materials for industries such as construction, automotive, and electronics. The company is headquartered in Seoul, South Korea, and its shares are listed on the KRX.

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