Hanwha Solutions (009830) Q4 2025 earnings summary

Executive summary

• Q4 2025 sales rose 12% quarter-over-quarter to KRW 3,778.3 billion, led by Renewable Division EPC business, but operating loss widened to -KRW 478.3 billion due to lower profitability.

• Full-year 2025 sales increased 8% year-over-year to KRW 13,354.4 billion (133,544억원), with operating loss persisting at -KRW 353.3 billion (-3,533억원).

• Net profit for Q4 was -KRW 404.8 billion; full-year net profit was -KRW 608.9 billion (-6,089억원), an improvement from -KRW 13,690억원 in 2024.

• Q4 operating margin was -12.7%, and net margin was -10.7%.

Financial highlights

• Q4 included approximately KRW 360 billion in one-off expenses, offset by KRW 640 billion in one-off gains, resulting in a net positive one-off impact of KRW 280 billion.

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

• Total assets at year-end 2025 reached KRW 33,122.2 billion (331,222억원), with liabilities of KRW 21,817.2 billion (218,172억원) and equity of KRW 11,305 billion (113,050억원).

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

• Net debt-to-equity ratio increased to 109%, and liabilities-to-debt ratio to 193%.

Outlook and guidance

• Renewable Energy Division expects a return to profitability in Q1 2026, driven by normalized U.S. operations and higher ASPs.

• 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 for 2026 is KRW 4–5 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.