Hanwha Solutions (009830) Q2 2025 earnings summary

Executive summary

• Addressed cell quality issues in Korea and Malaysia, with resolution expected by end of July and normalization of exports from August onward.

• 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.

• The company operates across basic materials, renewable energy, processed materials, and real estate, with a global footprint and a diversified portfolio of subsidiaries and affiliates.

• Recent years saw major restructuring, including mergers, spin-offs, and acquisitions to enhance business focus and efficiency.

• Residential energy (TPO) segment faces market uncertainty due to policy changes and end of 25D initiative, but expects to leverage 48E incentives and DCA model to increase market share.

Financial highlights

• 1H 2025 consolidated revenue: KRW 6,211.7 billion, down from KRW 12,394.0 billion in FY2024 and KRW 13,078.5 billion in FY2023.

• Cumulative first half operating profit for residential energy business was KRW 180 billion, offset by KRW 145 billion non-operating loss from financial instrument valuation, resulting in net profit of KRW 39 billion.

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

• Renewable energy revenue was 14,464억원 with operating profit of 1,562억원 (10.8% margin), driven by higher module prices and sales.

• 1H 2025 operating income: KRW 132.4 billion; net loss attributable to owners: KRW -246.1 billion.

Outlook and guidance

• Annual module shipment guidance was revised down to 7.5 GW for 2025 due to U.S. plant delays, quality issues, and project delays in Europe.

• Q3 renewable energy segment expected to post a loss of around KRW 100 billion, mainly due to reduced AMPC from quality issues and higher costs.

• The company is focused on expanding renewable energy and premium real estate, with ongoing investments in solar, energy storage, and data centers.

• Market conditions remain challenging due to global economic uncertainty, but long-term growth is expected in renewables and industrial infrastructure.

• No detailed guidance provided for residential business due to market uncertainty from OBBBA Act.