Hanwha Solutions (009830) Q4 2025 earnings summary

Executive summary

• Q4 consolidated sales rose 12.3% quarter-over-quarter to KRW 3,778.3 billion, led by EPC business growth in the Renewable Division, but operating loss widened to -KRW 478.3 billion due to lower profitability and negative margins across most segments.

• Full-year 2025 sales increased 8% year-over-year to KRW 13,354.4 billion (133,544억원), but operating loss persisted at -KRW 353.3 billion (-3,533억원), mainly from weak chemical markets.

• Net loss for FY2025 was -KRW 608.9 billion (-6,089억원), an improvement from -KRW 1,369 billion in 2024.

• Significant one-off items impacted results, with net positive one-off gains of KRW 280 billion in Q4.

Financial highlights

• Q4 pre-tax profit was -KRW 570.2 billion; full-year pre-tax profit was -KRW 826.4 billion.

• Total assets at year-end 2025 reached KRW 33,122.2 billion (331,222억원), up KRW 3,085.3 billion year-over-year.

• Cash and cash equivalents increased to KRW 2,665.8 billion; total debt rose to KRW 14,977.3 billion.

• Net debt climbed to KRW 12,311.5 billion.

• FY2025 EBITDA was KRW 430.7 billion (4,307억원), up 5.6% year-over-year, but EBITDA margin slightly decreased to 3.2%.

Outlook and guidance

• Renewable Energy Division expected to return to profitability in Q1 2026 as U.S. module plant operations normalize and ASPs rise.

• 2026 sales volume guidance for renewables is 9 GW, up from 6 GW in 2025.

• AMPC recognition projected at KRW 950 billion in 2026, with full value chain benefits in the second half.

• Development asset sales and EPC revenue guidance: KRW 4–5 trillion for 2026, with Q1 revenue at KRW 1–1.5 trillion.

• Renewable energy market expected to grow to over 40GW in the US and maintain 70GW+ in Europe, with policy risks and tax changes impacting growth.