Hanwha (000880) Q3 2026 earnings summary

Executive summary

• 3Q26 separate revenue fell 22% YoY to KRW 842bn and operating profit fell 20% to KRW 52bn; EBT included a KRW 1,083bn spin-off gain.

• Consolidated 9M 2026 revenue was ₩63.69tn, operating profit ₩3.96tn and net income ₩2.82tn; Q3 operating profit was ₩368.2bn versus ₩1.27tn YoY.

• The Aug. 1 spin-off transferred subsidiaries and investment-management activities to a newly listed entity, with related results classified as discontinued operations and affecting period comparability.

Financial highlights

• Separate-basis YTD revenue declined 12% to KRW 2,901bn, while operating profit rose 2% to KRW 355bn.

• 3Q separate EBT was KRW 1,093bn versus KRW 11bn and net income was KRW 1,117bn versus KRW 30bn, including a KRW 1,083bn spin-off business-transfer gain.

• Consolidated 9M gross profit was ₩7.37tn versus ₩6.69tn; continuing-operations profit was ₩2.60tn and discontinued-operations profit was ₩220.4bn.

• Consolidated Q3 revenue was ₩16.77tn versus ₩16.29tn YoY; operating profit was ₩368.2bn versus ₩1.27tn, and pretax result was a ₩553.5bn loss versus ₩955.9bn profit.

• At Sept. 30, consolidated assets were ₩282.35tn, liabilities ₩232.94tn and equity ₩49.41tn; cash and equivalents were ₩12.83tn versus ₩14.68tn at 2025 year-end.

Outlook and guidance

• 2026 E&C order intake is expected to total KRW 4.3tn: KRW 3.7tn development and KRW 0.6tn infrastructure.

• Chemical outlook is cautious: PE faces oversupply and weak pricing, PVC demand recovery is delayed, while TDI may improve in Q4 with producer maintenance and price increases.

• Solar strategy focuses on US integrated manufacturing, EPC, storage and residential energy solutions, amid FEOC, tariff and permitting uncertainty.

• Defense demand prospects reflect higher spending, European rearmament and geopolitical uncertainty; export competition and localization requirements are increasing.

• Construction plans prioritize mixed-use development, data centers and environmental projects, with selective housing and risk management amid cost inflation and PF-market instability.