POSCO Holdings (005490) Q1 2025 earnings summary

Executive summary

• Consolidated revenue for FY2023 was W77,127bn, down from W84,750bn in FY2022; 1Q24 revenue was W18,052bn, and Q1 2025 revenue was KRW 17.4 trillion, showing sequential declines.

• Consolidated operating profit for FY2023 was W3,531bn, down from W4,850bn in FY2022; 1Q24 operating profit was W95bn, and Q1 2025 operating profit was KRW 568.4 billion, reflecting margin pressure.

• Net profit attributable to owners in Q1 2025 was KRW 302.3 billion, down from KRW 540.7 billion in Q1 2024.

• The group maintained a strong balance sheet with total assets of KRW 102.1 trillion and equity of KRW 61.7 trillion as of March 2025.

Financial highlights

• Steel segment revenue in FY2023 was W63,539bn, down from W70,650bn in FY2022; 1Q24 steel revenue was W15,419bn, and Q1 2025 was KRW 9.4 trillion.

• Infrastructure business revenue in FY2023 was W57,157bn, down from W65,901bn in FY2022; 1Q24 was W13,749bn, and Q1 2025 trading revenue was KRW 5.9 trillion.

• Energy materials (battery materials) posted an operating loss of W161bn in FY2023, widening to W278bn in FY2024; Q1 2025 operating loss was KRW -97.0 billion.

• Gross profit margin for Q1 2025 was 7.7%, stable year-over-year.

• Cash and cash equivalents stood at KRW 6.77 trillion at quarter-end.

Outlook and guidance

• Battery recycling and lithium production plants are in ramp-up and validation phases, with commercial production started at Plant 1 and Plant 2 under construction.

• Management expects continued market volatility due to global economic uncertainty, U.S. tariffs, and raw material price fluctuations.

• The group will focus on high-value products, cost control, and digital transformation to sustain profitability.

• Some business segment disclosures and Energy/Materials reporting changed in early 2024 due to organizational restructuring.