Hanwha Solutions has reported improved earnings for the second quarter of this year, driven by its solar business. The company noted that the funds to be raised through a capital increase have been reduced to half of the initial plan, raising questions about whether profits from key business segments and increased module shipments in the second half will alleviate investment burdens.
On July 29, Hanwha Solutions announced that its consolidated revenue for the second quarter of 2026 reached 4.5826 trillion won, with an operating profit of 306.5 billion won. This represents a 47.01% increase in revenue and a 200.33% increase in operating profit compared to the same period last year.
All major business segments, including renewable energy, chemicals, and advanced materials, reported profits, contributing to the overall improvement in performance.
The renewable energy segment generated 2.4823 trillion won in revenue and 166.4 billion won in operating profit. The increase in solar module sales prices, the sale of development assets, and stable revenue from the U.S. residential energy business all contributed to the improved profitability.
The chemicals segment reported revenue of 1.465 trillion won and an operating profit of 87.1 billion won. Despite geopolitical risks from the Middle East, the company maintained a stable production and sales system by timely procurement of raw materials like ethylene.
The advanced materials segment achieved revenue of 300.3 billion won and an operating profit of 28.8 billion won, benefiting from strong sales of solar materials in North America.
The company also reflected the impact of receiving refunds for previously paid tariffs in the U.S. During the earnings conference call, Hanwha Solutions stated, "A decision was made to refund the import tariffs previously paid, which improved profits by approximately 90 billion won as it was deducted from the cost of sales."
However, solar module sales volume in the second quarter saw a slight decline compared to the previous quarter. Hanwha Solutions projects module shipments to reach approximately 2.5 gigawatts in the third quarter, an increase of over 1 gigawatt from the second quarter.
If the increase in shipments in the second half leads to improved profitability, the reduced capital increase may alleviate some financial burdens. Hanwha Solutions recently set the final issuance price for the capital increase at 22,100 won per share, resulting in a total amount raised of 1.1713 trillion won, which is half of the initially planned 2.4 trillion won.
The company plans to use the raised funds for investments in U.S. solar production facilities and operational funds. However, with a funding gap of about 1.2 trillion won due to the lower issuance price, it will need to enhance its cash generation through operational activities to maintain investment momentum.
Regarding a petition filed by a U.S. solar company to classify imports of Korean-made cells as circumvention of trade rules, Hanwha Solutions anticipates limited impact on its business. Although the petition has been submitted to the U.S. Department of Commerce, no official investigation has begun.
Hanwha Solutions stated, "Our production system and supply chain are clearly different from the claims made in the petition," adding, "We have sufficient factual and objective evidence to prove that we are not engaged in circumvention of trade rules."
The company also noted that a similar petition was filed regarding its Malaysian Qcell factory, but the U.S. Department of Commerce ruled it was not circumvention at that time, suggesting that this current issue is unlikely to affect its operations.
Hanwha Solutions views the domestic solar market as a long-term growth driver. The government has set a goal of establishing 100 gigawatts of renewable energy capacity by 2030, which is expected to create diverse demand, including agrivoltaics.
"Rather than immediately increasing the operating rate of domestic production facilities, we are preparing while observing the policies that will be specified in the second half of the year," the company stated. "If support measures like the Korean Inflation Reduction Act (IRA) are implemented, we can secure additional growth potential in the domestic market."
In the field of space solar power, Hanwha Solutions is discussing technological cooperation with global institutions and companies. The company mentioned, "We are conducting discussions on technology collaboration and research and development with leading global institutions and industry players. While we are in talks about specific collaboration plans with some companies, we cannot disclose their names at this time."
Hanwha Solutions confirmed that there are no changes to its annual revenue targets, expecting approximately 6 trillion won from its renewable energy EPC business and over 2.7 trillion won from its chemical resin business. In the second half, the company plans to continue improving its performance based on increased solar module shipments, asset sales, and growth in the residential energy business.
* This article has been translated by AI.
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