POSCO Holdings (005490) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue was KRW 17.6 trillion, operating profit KRW 610 billion, and operating margin 5.7%, with two consecutive quarters of growth driven by steel segment recovery and cost-cutting initiatives.

• Net profit for Q2 was KRW 84 billion, impacted by non-operating losses including FX and asset impairment; H1 2025 net income attributable to controlling interests was KRW 462.2 billion.

• Portfolio management and restructuring of non-core assets generated KRW 1 trillion in cash flow, with a 45% progress rate on 56 completed projects since 2024.

• The group completed significant internal restructuring, including subsidiary absorption and expansion in battery materials and green energy.

• Maintains strong credit ratings (A- S&P, Baa1 Moody's) and is listed on KOSPI since 1988.

Financial highlights

• Q2 2025 EBITDA was KRW 1.6 trillion; H1 2025 consolidated revenue was KRW 34.99 trillion and operating profit KRW 1.18 trillion.

• Net debt decreased by KRW 770 billion to KRW 10.92 trillion; net debt to equity ratio improved to 18.0%.

• Basic and diluted EPS for H1 2025 were KRW 2,114.

• Cash and cash equivalents at June 30, 2025, were KRW 7,002.3 billion.

• R&D expense for H1 2025 was KRW 59.9 billion, 0.95% of sales.

Outlook and guidance

• Ongoing restructuring and asset consolidation aim to generate KRW 1 trillion in H2 2025 cash flow, targeting KRW 2 trillion by year-end.

• Continued investment in green steel, battery materials, and global expansion, with a focus on carbon neutrality and digital transformation.

• Management expects continued volatility from global trade tensions, raw material price fluctuations, and regulatory changes.

• Lithium business expected to benefit from market rebound, with prices projected to rise above $9 in late 2025 and potentially exceed $10 by 2026.

• Steel sales volume in H2 expected to surpass H1, aided by the restart of the FINEX number three line.