Hanwha Solutions (009830) Q2 2026 earnings summary

Executive summary

• Achieved strong sequential growth in sales and operating profit in 2Q26, driven by improvements across Renewable Energy, Chemicals, and Advanced Materials segments.

• Net profit turned positive year-over-year and quarter-over-quarter, reflecting operational improvements and one-off gains.

• The company operates in basic materials, processing materials, renewable energy, and other segments, with a global presence and a diversified portfolio including chemicals, solar, automotive, and real estate businesses.

• Recent years saw significant restructuring, including mergers, spin-offs, and acquisitions to enhance competitiveness and operational efficiency.

• The company maintains a strong credit profile, with AA- ratings for bonds and A1 for commercial paper from major rating agencies.

Financial highlights

• Sales rose 18% quarter-over-quarter to KRW 45,826 billion and 47% year-over-year.

• Operating profit increased 231% quarter-over-quarter to KRW 3,065 billion, with margin up to 6.7%.

• EBITDA reached KRW 5,241 billion, up 70% quarter-over-quarter.

• Net profit was KRW 2,929 billion, reversing losses from prior periods.

• Consolidated revenue for the first half of 2026 was KRW 8,464.6 billion, down from KRW 13,333.1 billion in the previous year.

• Operating income for H1 2026 was KRW 399.1 billion, a turnaround from a loss of KRW 364.8 billion in H1 2025.

• Net income attributable to owners was KRW 234.6 billion, compared to a net loss of KRW 650.4 billion in H1 2025.

• Segment sales: Renewable Energy KRW 24,823 billion, Chemicals KRW 14,650 billion, Advanced Materials KRW 3,003 billion, Others KRW 3,350 billion.

• Total assets as of June 2026 were KRW 35,370.3 billion, with total equity of KRW 12,467.0 billion.

Outlook and guidance

• U.S. residential solar installations expected to decline YoY but recover gradually; commercial and utility segments maintain solid demand.

• Chemicals segment faces increased price volatility and gradual normalization in PVC; caustic soda and TDI prices expected to decline as supply stabilizes.

• Renewable Energy operating profit expected to remain stable, supported by U.S. plant output and higher contract volumes.

• Advanced Materials revenue and profit projected to rise with new automotive launches and strong solar materials sales.

• Strategic focus remains on strengthening core businesses, expanding renewable energy, and enhancing global competitiveness.