POSCO Holdings (005490) Q1 2026 earnings summary

Executive summary

• Q1 2026 consolidated revenue was KRW 17.88 trillion, with operating profit of KRW 707 billion, both improving year-over-year; net profit attributable to controlling interest was KRW 467 billion, reflecting higher finance costs.

• The group operates as a holding company with 201 consolidated subsidiaries across six business segments, with steel as the largest by revenue and assets, and ongoing investments in battery materials and global expansion.

• Strategic transformation in steel includes retiring aging facilities, expanding low-carbon EAF production, and advancing HyREX technology, alongside major investments in India and the U.S.

• Rechargeable battery materials segment narrowed losses, with POSCO Argentina achieving its first-ever monthly KRW profit in March and the Argentina plant at 70% utilization.

• The group continues to invest in capacity expansion, R&D, ESG, and decarbonization, maintaining a strong focus on global supply chain resilience.

Financial highlights

• Q1 2026 consolidated revenue: KRW 17.88 trillion (Q1 2025: KRW 17.44 trillion); operating profit: KRW 707 billion (Q1 2025: KRW 568 billion); net profit: KRW 467 billion (Q1 2025: KRW 302 billion).

• Gross margin improved to 8.5% from 7.7% year-over-year; operating margin: 4.0% (Q1 2025: 3.3%).

• EPS was KRW 6,178, up from KRW 3,998 in Q1 2025.

• Cash and cash equivalents stood at KRW 7.07 trillion as of March 2026.

• Net cash provided by operating activities was KRW 668.8 billion, down from KRW 1.3 trillion in Q1 2025.

Outlook and guidance

• The group targets a shareholder return ratio of 35–40% of adjusted controlling interest net income for 2026–2028, combining cash dividends and share buybacks.

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

• Steel demand recovery is expected to remain constrained due to global economic uncertainty, high energy and logistics costs, and ongoing geopolitical risks.

• Ongoing investments in steel decarbonization, battery materials, and global infrastructure are expected to drive long-term growth.

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