Posco Future M (003670) Q4 2024 earnings summary

Executive summary

• Energy materials sales declined due to lower cathode material prices and weak anode sales, resulting in impairment losses and a net loss for the year.

• Continued investment in energy materials increased tangible assets and borrowings, with financial structure improved by hybrid bond issuance.

Financial highlights

• Revenue fell to KRW 3,699.9bn in 2024, down KRW 1,060bn year-over-year.

• Operating profit dropped to KRW 0.7bn from KRW 35.9bn in 2023; operating margin at 0.0%.

• Net profit turned negative at KRW -231.3bn, a decrease of KRW 235.7bn year-over-year.

• EBITDA increased slightly to KRW 184.8bn, up KRW 10.8bn year-over-year.

• Significant impairment losses: KRW 93bn for China JV, KRW 303bn for obsolete facilities.

Outlook and guidance

• Lithium and nickel markets expected to remain weak in 1Q25 due to oversupply and high inventories, with limited price rebound.

• Lower mining quotas in Indonesia may provide downside protection for nickel prices.