Hanwha Solutions cut its full-year solar production guidance by as much as 43% after delays at its U.S. manufacturing operations and prolonged customs reviews undermined the South Korean conglomerate’s renewable energy ambitions.
The company reduced its annual advanced materials production certificate forecast to between ₩4 trillion and ₩4.5 trillion ($2.8 billion-$3.1 billion) from ₩7 trillion, according to a disclosure filed Tuesday. Module shipment guidance dropped to 6 gigawatts from 7.5 gigawatts as the company grapples with operational setbacks at its Georgia facilities.
Third-quarter consolidated sales reached ₩3.36 trillion ($2.3 billion), up 7.9% from the prior quarter, driven largely by renewable energy division revenue. Yet the company posted an operating loss of ₩7.4 billion ($5.1 million) as profitability in its solar business collapsed 95% quarter-over-quarter due to weak utilization at U.S. module plants.
Hanwha reported net income of ₩4.5 billion ($3.1 million), though the figure was inflated by a ₩157.2 billion bargain purchase gain from equity method investments. The company’s debt-to-equity ratio climbed 14 percentage points to 112% as total debt surged by ₩1.7 trillion.
The mass production start at Hanwha’s Cartersville cell manufacturing plant has been pushed to 2026 after defects emerged during commissioning. U.S. Customs and Border Protection’s supply chain review has further constrained shipment volumes, with the company expecting fourth-quarter module deliveries to fall 50% from the third quarter.
CFO Jung Won-yong cited the company’s immediate priority as normalizing operations at the Cartersville facility. The advanced materials segment maintained profitability with ₩3.6 billion in operating profit despite declining sales.
Investors reacted harshly to the guidance cuts, sending Hanwha Solutions shares down 14.7% to ₩28,825 following the earnings announcement.
