Posco Future M (003670) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated sales reached KRW 758 bn, up KRW 200 bn sequentially but down KRW 87 bn year-over-year, with operating profit at KRW 18 bn and net profit at KRW 6 bn, both recovering from prior quarter losses.

• Net income attributable to owners was KRW 2.7 bn, reflecting a significant year-over-year decline in profitability.

• Energy materials accounted for 57.3% of sales, basic materials 27.8%, and refractory business 14.9%.

• The company is expanding its battery materials business with major investments in cathode/anode capacity and global partnerships.

Financial highlights

• Gross profit improved to KRW 73 bn from KRW 8 bn in 4Q25, nearly matching 1Q25.

• EBITDA rose sharply to KRW 67 bn from KRW 1 bn in 4Q25.

• Operating profit margin (OPM) was 2.3%, up 11.6 percentage points sequentially.

• Net profit margin (NPM) was 0.8%, a 5.0 percentage point improvement from 4Q25.

• Basic EPS was -67 KRW, compared to 541 KRW in Q1 2025.

Outlook and guidance

• Final stage contract negotiations for LFP cathode with key customers, including European EV makers.

• Mass production of new LFP cathode lines scheduled for 2H26, with prototype shipments in May 2026.

• Artificial graphite anode mass production in Vietnam planned for 2028, with a major supply contract signed in Mar. 2026.

• Management expects continued growth in battery materials, driven by global EV and ESS demand, but notes short-term challenges from raw material price volatility and global economic uncertainty.

• Ongoing investments in new capacity and R&D to support long-term competitiveness.