Hanwha Solutions (009830) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was KRW 3,094.5 billion, down 33% QoQ but up 31.5% YoY, mainly due to power generation asset sales, lower EPC and module shipments, and strong renewable energy growth.

• Operating profit dropped 72% QoQ to KRW 30.3 billion, but improved from a loss in Q1 2024, reflecting cost controls and renewables profitability.

• Net loss attributable to equity holders was KRW 44.5 billion, narrowing from KRW 457.8 billion loss in Q1 2024; pre-tax profit was negative KRW 68.1 billion.

• IRA implementation contributed KRW 1,839 billion to operating profit in Q1 2025.

• Strategic focus remains on sustainable growth through technology, innovation, and expansion in energy and materials.

Financial highlights

• Total assets rose to KRW 30,481.5 billion as of Q1 2025; total liabilities at KRW 20,042.2 billion; total equity at KRW 10,439.3 billion.

• Cash and cash equivalents decreased to KRW 1,935.1 billion.

• EBITDA for Q1 2025 was KRW 192.5 billion, with a margin of 7.2%.

• Gross profit margin improved to 14.6% in Q1 2025.

• EPS for Q1 2025 was -KRW 316.

Key financial ratios and metrics

• Debt-to-equity ratio increased to 192% in Q1 2025; net debt-to-equity ratio rose to 112%.

• Inventory turnover was 2.4x, down from 2.9x last year.

• R&D expense ratio was 3.37% of sales.

• ROE remained negative at -1.2%.