Hanwha Corporation (A000880) Q2 2025 earnings summary

Executive summary

• Consolidated sales rose 48% year-over-year to KRW 19,242 billion, with strong growth in both non-financial and financial subsidiaries.

• Operating profit surged 153% year-over-year to KRW 1,335 billion, driven by defense exports and residential energy expansion.

• Net profit increased 622% year-over-year to KRW 269 billion, reflecting improved profitability across key segments.

• Report covers the semi-annual period ending June 30, 2025, for a diversified conglomerate with operations in explosives, chemicals, shipbuilding, construction, energy, finance, and more.

• The group operates through 832 consolidated subsidiaries, with significant changes in scope due to new consolidations and divestitures.

Financial highlights

• Consolidated revenue for H1 2025 was KRW 35.88 trillion, down from KRW 55.65 trillion in FY2024.

• Operating profit for H1 2025 was KRW 2.41 trillion, nearly flat year-over-year.

• Net profit attributable to controlling interests was KRW 160.3 billion, with total net profit at KRW 734.5 billion.

• Separate revenue declined 27.4% year-over-year to KRW 1,130 billion, but operating profit turned positive at KRW 130 billion.

• E&C division revenue fell due to project completions, but operating profit improved from project settlements.

Outlook and guidance

• The group continues to focus on business portfolio optimization, including divestitures and new investments in energy, defense, and digital sectors.

• Ongoing expansion in global markets, especially in energy, shipbuilding, and defense.

• Management expects continued volatility in global markets but is pursuing growth in renewable energy, advanced materials, and financial services.

• E&C expects progress on major Seoul and Suseo Station projects and continued Iraq BNCP project execution.

• Global division aims to expand ammonium nitrate and detonator sales, diversify exports, and secure long-term contracts.