Q1 2026 Earnings: A Reversal Beyond Expectations Has Begun

Hanwha Solutions recorded consolidated sales of 3.882 trillion won and operating profit of 92.6 billion won in the first quarter of 2026, exceeding market expectations. This represents a 25.4% increase in sales and a sharp 205.6% surge in operating profit compared to the same period last year. Notably, the company successfully returned to operating profit in three quarters since Q2 2025, signaling structural improvements. The renewable energy sector led the earnings improvement with 2.1109 trillion won in sales and 62.2 billion won in operating profit, while the chemical and advanced materials sectors also successfully turned profitable, showing balanced growth across all business divisions. This positive trend was driven by the normalization of operations at its U.S. plant, increased solar module sales, and rising selling prices.

Solar Business: Becoming a Key Driver for Stock Price Growth

The biggest pillar of Hanwha Solutions’ stock price forecast is undoubtedly its solar business. The Advanced Manufacturing Production Tax Credit (AMPC) benefits under the U.S. Inflation Reduction Act (IRA) are estimated to reach approximately 950 billion won in 2026, which will be a strong cash flow for Hanwha Solutions. Projections also indicate that solar and energy storage system (ESS) installations will significantly exceed market expectations from 2026 to 2028. In particular, the deepening power grid shortage in the U.S. and the surge in demand from big tech companies for data centers are widely expected to drive solar market growth. Furthermore, with Chinese companies being excluded from the U.S. market due to the Foreign Entity of Concern (FEOC) regulations, expectations are growing that Hanwha Solutions will enjoy a premium as the only company to integrate the solar value chain within the U.S. In addition, the development of perovskite-based tandem cell technology, dubbed ‘dream solar,’ is expected to play a key role in the space solar sector and is attracting attention as a future growth engine.

Analyze how changes in U.S. energy policy will affect your investments in advance.

Rights Offering Controversy and Financial Soundness: Risk Assessment is Essential

It’s not all positive outlooks. Hanwha Solutions has temporarily postponed its rights offering schedule, which was planned for new business investments and debt repayment. The main reason was the Financial Supervisory Service’s request for correction, stating that “the explanation of whether there are other ways to raise funds besides a rights offering was insufficient.” The net borrowings of approximately 12 trillion won also need to be carefully examined in terms of financial soundness management. The news of the rights offering postponement raised concerns about shareholder value dilution, to which Vice Chairman Kim Dong-kwan and other top executives demonstrated their commitment to responsible management by purchasing company shares worth approximately 3 billion won. This action is seen as dispelling market concerns and demonstrating confidence in the company’s future value. From an investor’s perspective, it is essential to thoroughly review potential risk factors, such as whether the rights offering will be re-initiated and its size, and whether the oversupply in the chemical sector will continue.

Hanwha Solutions Stock Price in 2026: What’s a Smart Investment Strategy?

The series of upward revisions to target stock prices by securities firms for Hanwha Solutions is a positive sign. KB Securities raised its target price by 48% to 67,000 won, and Eugene Investment & Securities presented an aggressive forecast of up to 80,000 won. This is a result of highly valuing the full-fledged earnings turnaround in 2026 and the growth potential of the solar business. However, financial issues such as the postponement of the rights offering can increase short-term stock price volatility. Therefore, investors should not only look at rosy forecasts but also comprehensively assess the company’s efforts to diversify its business portfolio, the status of next-generation technology development, and efforts to improve its financial structure. Above all, considering macroeconomic factors such as changes in the global energy market and U.S. policy volatility is the golden rule for a smart investment strategy.

Under the leadership of Vice Chairman Kim Dong-kwan, Hanwha Solutions is preparing for a major leap forward in 2026, centered on its solar business. The first-quarter earnings signaled the beginning of a successful turnaround, but the variable of the rights offering postponement certainly exists. It is important to balance the company’s growth potential and risk factors and approach it cautiously according to individual investment goals.

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