POSCO Holdings (005490) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose to KRW 18.51 trillion, up 2.5% sequentially, with operating profit up 29% to KRW 752 billion, driven by steel and infrastructure gains.

• Transitioned to a holding company structure in March 2022, focusing on group-wide strategy, M&A, and future business portfolio development.

• Maintains strong credit ratings: S&P A- (Stable), Moody's Baa1 (Stable).

• Shareholder-friendly policies include immediate cancellation of treasury stock buybacks and a focus on long-term growth in rechargeable battery materials.

• Strategic restructuring of non-core assets is underway, with proceeds to be used for growth and shareholder returns.

Financial highlights

• 2024 H1 consolidated revenue: ₩36.56 trillion, down from ₩39.50 trillion in H1 2023.

• Q2 EBITDA reached KRW 1.76 trillion, with EBITDA margin at 9.5%.

• Net borrowings increased by KRW 115 billion, but net debt to equity ratio improved to 15.9%.

• CapEx for Q2 was KRW 2.6 trillion; cumulative CAPEX to Q2 2024 reached KRW 4.4 trillion.

• Basic EPS for H1 2024: ₩14,110.

Outlook and guidance

• Steel production is expected to recover in Q3 as refurbishment projects conclude, with cautious optimism for further profit improvement.

• Full operation of key lithium and nickel plants targeted for 2025–2026, with ongoing ramp-up and certification processes.

• HYREX green steelmaking demo project aligned with government R&D, pending legislative approval in Q3 2025.

• Announced plans for further share buybacks and cancellations, and a stable dividend policy (₩2,500 per share interim dividend in 2024 H1).

• Restructuring of 120 non-core assets will continue through 2027, with temporary losses expected but long-term profit improvement anticipated.