The South Korean solar and chemical company posted an operating profit of 90.5 billion won ($67.7 million) for the July to September quarter, compared with a 7.4 billion won loss a year earlier, according to its preliminary earnings filing.
Revenue rose 17.4 percent from a year earlier to 3.95 trillion won, while net profit jumped to 68.5 billion won from 4.5 billion won.
The renewable energy division, which operates under the Hanwha Qcells brand, raised operating profit to 105.1 billion won from 7.9 billion won a year earlier, as revenue grew 23.5 percent to 2.16 trillion won.
Hanwha Solutions cited higher module sales to the U.S. market and improved profitability in its residential energy business.
The chemical division's operating loss widened to 44.7 billion won from 9.0 billion won a year earlier, even as revenue rose 15.7 percent to 1.34 trillion won.
The company explained that product prices stayed weak as the geopolitical risk premium eased and international oil prices fell.
Raw materials bought earlier at higher prices also squeezed margins, a so-called negative lagging effect, the company said.
The advanced materials division, which makes lightweight composites for vehicles and materials for solar panels, raised operating profit to 38.9 billion won from 3.6 billion won a year earlier as major customers in North America increased production.
"With our Solar Hub fully up and running, we posted a third straight quarterly profit, led by the renewable energy division," said Lee Jae-bin, chief financial officer of Hanwha Solutions.
The Solar Hub is the company's solar manufacturing complex in the U.S. state of Georgia.
Lee said module prices are expected to keep rising in the fourth quarter due to changes in U.S. trade policy.
He added that delays in passing on higher prices, along with changes in the schedules and costs of engineering, procurement and construction (EPC) projects, could cause short-term swings in earnings.
Shares of Hanwha Solutions traded at 23,900 won at 2:45 p.m., down 10.49 percent from the previous session.
AJP Takeaways
- Hanwha Solutions reported a preliminary third-quarter 2026 operating profit of 90.5 billion won on Oct. 29, 2026, reversing a 7.4 billion won loss a year earlier but down 70.5 percent from the second quarter.
- Revenue rose 17.4 percent from a year earlier to 3.95 trillion won, and the renewable energy division earned 105.1 billion won in operating profit on higher U.S. module sales.
- The chemical division swung to a 44.7 billion won operating loss from a second-quarter profit, and Hanwha Solutions expects higher module prices in the fourth quarter alongside short-term earnings volatility.
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