Hanwha Solutions Corp (XKRX:009830) Q2 2026 Earnings Call Highlights: Strong Sales Growth …

This article first appeared on GuruFocus.

Release Date: July 29, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Hanwha Solutions Corp (XKRX:009830) reported a significant increase in Q2 sales, up 18% quarter-over-quarter, driven by improved profitability across major business segments.

• The Renewable Energy Division saw an 18% increase in sales and a rise in operating profit due to higher module ASPs and increased residential volume.

• The Chemical Division turned a profit in 2026, generating over 100 billion won in operating profit, reversing the previous year’s operating loss.

• The Advanced Materials Division experienced a 136% growth in operating profit quarter-over-quarter, supported by increased solar material sales in North America.

• Equity method gains increased in Q2 due to valuation gains from a financial investment product held by Hanwha Impact.

Negative Points

• Total liabilities increased by 944.3 billion won, and net debt rose by 272.7 billion won, indicating a rise in financial obligations.

• The Chemical Division faces a volatile business environment with disruptions in logistics and supply, impacting production and sales.

• Module sales in the Renewable Energy Division declined quarter-over-quarter due to delays in some projects caused by adverse weather conditions.

• The market circumstances for the Chemical Division in Q3 are expected to be challenging, with reduced risk premiums and limited spread expansion.

• Equity method gains are expected to decline in Q3 due to the absence of a one-off event that occurred in Q2.

Q & A Highlights

Q: What factors contributed to the improvement in profitability in the renewable energy segment, and how is this expected to continue into the third quarter? A: The improvement was driven by a rise in North American module prices and a shift towards residential modules, resulting in a 5% increase in ASP. Additionally, tariff refunds contributed to the profit increase. For Q3, further profitability is expected due to increased TPO business profits and mass production at the Cartersville facilities, which will boost AMPC recognition. (Respondent: Kim Tae Hong, Head of QCell Strategy Office)

Q: Can you explain the impact of tariff refunds on the cost of goods sold and the reasons behind the recent price increases? A: The IEPA tariff refunds improved profits by reducing the cost of goods sold by approximately 90 billion won. Price increases were due to an improved product mix and a general rise in market selling prices. However, market volatility is expected in the second half, influenced by the Section 232 ruling. (Respondent: Kim Tae Hong, Head of QCell Strategy Office)