Hanwha Corporation (A000880) Q4 2025 earnings summary

Executive summary

• Consolidated sales rose 17% year-over-year to KRW 21,076 bn in 4Q25, with full-year sales up 34% to KRW 74,747 bn, driven by growth in Hanwha Aerospace and insurance subsidiaries.

• Operating profit dropped 64% year-over-year to KRW 404 bn in 4Q25, but full-year operating profit increased 72% to KRW 4,156 bn.

• Net income declined 88% year-over-year to KRW 205 bn in 4Q25, but rose 16% for the full year to KRW 1,965 bn.

Financial highlights

• Separate revenue fell 28.7% year-over-year to KRW 1,009 bn in 4Q25; operating profit turned to a loss of KRW -12 bn.

• E&C division revenue dropped 39% year-over-year in 4Q25, with operating profit turning to a loss of KRW -46 bn.

• Global division revenue decreased 1% year-over-year in 4Q25, with operating profit turning to a loss of KRW -7 bn.

• Hanwha Aerospace revenue surged 73% year-over-year to KRW 8,326 bn in 4Q25, but operating profit declined due to one-off defense costs.

• Hanwha Solutions revenue fell 19% year-over-year to KRW 3,778 bn, with operating profit turning to a loss of KRW -478 bn.

Outlook and guidance

• E&C expects 2026 revenue to remain subdued after major project completions, but order backlog remains strong with resumed Iraq BNCP project.

• Global division anticipates stable sales growth from expanded customer base and full-scale operation of Yeosu nitric acid plant.

• Hanwha Aerospace projects continued growth from defense backlog and export demand.

• Hanwha Solutions expects performance improvement from U.S. solar normalization and cost reductions.

• Financial subsidiaries aim to enhance profitability through CSM growth, stable amortization, and high-yield asset allocation.