POSCO Holdings (005490) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue reached KRW 17.88 trillion, with operating profit at KRW 710 billion, marking sequential and year-over-year growth, though net profit attributable to controlling interest declined to KRW 467.2 billion due to higher finance and tax costs.

• Rechargeable battery materials segment narrowed losses significantly, with POSCO Argentina achieving its first-ever monthly KRW profit in March.

• Steel segment faced margin pressure from FX and raw material costs, but overseas subsidiaries and infrastructure business delivered profit gains.

• Achieved highest quarterly operating profit since merger, driven by core business stability and improved cash generation despite increased borrowings.

• Strategic transformation in steel includes retiring aging facilities, expanding low-carbon EAF production, and advancing HyREX technology.

Financial highlights

• Q1 consolidated revenue: KRW 17.9 trillion, up KRW 1 trillion quarter-over-quarter; operating profit: KRW 710 billion; EBITDA: KRW 1.8 trillion, up KRW 721 billion QOQ.

• Net income increased 36% year-over-year to KRW 277 billion; EPS was KRW 6,178, up from KRW 3,998 in Q1 2025.

• Steel business profit increased by KRW 91 billion QOQ; POSCO E&C turned to profit with KRW 53 billion in OP.

• Rechargeable battery materials narrowed losses by KRW 150 billion QOQ, driven by higher Argentina lithium plant utilization.

• Infrastructure segment profit rose by KRW 415 billion QOQ, led by POSCO International.

Outlook and guidance

• Expect continued strong performance in lithium and infrastructure segments in Q2, with POSCO Argentina projected to post its first-ever quarterly KRW profit.

• Anticipate gradual profit gains in steel as geopolitical risks and input costs subside in the second half.

• Commercial operation of new palm refinery expected from June 2026, with operational stabilization in 2H 2026.

• POSCO E&C aims for KRW 120 billion in operating profit for the year, despite input cost risks.

• Lithium business expected to turn to profit in the second half as low-price contracts expire and utilization rises.