Posco Future M (A003670) Q3 2024 earnings summary

Executive summary

• Profitability weakened due to lackluster anode sales and cathode inventory valuation losses, though base material business normalized after furnace revamp.

Financial highlights

• 3Q24 revenue was KRW 922.8bn, up 0.8% sequentially but down 28.2% year-over-year.

• Operating profit was KRW 1.4bn (0.2% margin), down from KRW 2.7bn in 2Q24 and KRW 37.1bn in 3Q23.

• Net profit was a loss of KRW 1.2bn, an improvement from a KRW 11.2bn loss in 2Q24 but down from KRW 23.2bn profit in 3Q23.

• EBITDA for 3Q24 was KRW 49bn, up slightly from 2Q24 but down year-over-year.

Outlook and guidance

• Lithium prices expected to remain under downward pressure in 4Q24 due to low demand and new supply.

• Nickel prices may rise in 4Q24 on hopes of demand recovery from US rate cuts and China stimulus.