Hanwha Solutions Posts Operating Profit of KRW 92.6 Billion, Up 205%...All Divisions Return to Profit

Q CELLS Recovers Profitability as U.S. Customs Clearance and Tariff Barriers Ease
Structural Improvements Drive Chemical Division's Return to Profit After Two and a Half Years

Hanwha Solutions achieved improved earnings by posting a profit in all business divisions, despite the expansion of external uncertainties.

Hanwha Solutions CI.

According to Hanwha Solutions on April 28, 2026, consolidated sales for the first quarter of 2026 were KRW 3.882 trillion, marking a 25.4% increase year-on-year. Operating profit reached KRW 92.6 billion, up 205.5%. The company returned to profitability for the first time in three quarters since the second quarter of 2025.

The performance improvement is analyzed as the result of a combination of factors, including normalization of operations at the U.S. plant, structural profitability improvement driven by changes in the policy environment, and fundamental enhancements in the chemical business.

The renewable energy division recorded sales of KRW 2.1109 trillion and operating profit of KRW 62.2 billion. Despite the seasonal off-peak period, sales grew by 32.0%, maintaining the KRW 2 trillion range for the second consecutive quarter. The issue of delayed customs clearance for U.S.-bound cells, which occurred last year, has been resolved, enabling the local plant to operate normally. Additionally, faster progress in EPC projects led to an increase in module sales volume.

The policy environment in the United States is also turning favorable. The U.S. Department of Commerce issued preliminary anti-dumping and countervailing duty rulings of 103% to 249% on solar products from India, Indonesia, and Laos in February and April this year. As a result, Q CELLS, which has an established local production system, is expected to benefit from both enhanced price competitiveness and increased sales volume. Additional benefits are anticipated from supply chain restructuring due to regulations on Foreign Entities of Concern (FEOC).

Growth is expected to continue into the second quarter. Based on robust demand in the United States, both an increase in module sales volume and higher prices are anticipated. Improved profitability is also expected, reflecting increased EPC orders and the sale of development assets.

The chemical division posted sales of KRW 1.3401 trillion and operating profit of KRW 34.1 billion. Sales increased by 24.8%, and the division returned to profitability for the first time since the third quarter of 2023.

Although there was some impact from product price increases due to Middle East issues, it is primarily assessed that the effects of structural improvement are now being fully realized. The overall profit structure improved through the disposal of non-profitable businesses, production line optimization, and a strategy focused on profitability. The overseas PVC business returned to profit, and the caustic soda business improved profitability due to reduced electricity costs. The W&C business also contributed to the results, thanks to an increased proportion of high-profit products.

A moderate improvement trend is expected to continue into the second quarter. The plan is to secure key raw materials such as ethylene in a timely manner to increase operating rates and to expand the business centered on ultra-high voltage cable materials.

The advanced materials division turned profitable with sales of KRW 285.6 billion and operating profit of KRW 12.2 billion. For solar materials, improvements in cost structure and increased sales in the U.S. contributed to the results, while the lightweight composite materials business saw improved profitability driven by export growth and favorable exchange rates.

In the second quarter, further profitability improvement is expected, driven by increased sales of solar materials and rising demand for electric vehicles.

Hanwha Solutions stated, "We expect the trend of performance improvement to continue through the end of the year," adding, "Once the cell line at the Cartersville plant in the U.S. enters mass production in the third quarter, profit generation in the renewable energy division will gain momentum." The company also said, "The chemical division plans to maintain its profit-making trend through proactive raw material procurement and further fundamental improvements."

This content was produced with the assistance of AI translation services.