POSCO Holdings (005490) Q3 2025 earnings summary

Executive summary

• Operating profit recovery continued for three consecutive quarters, with Q3 2025 operating profit at KRW 639 billion, despite ongoing losses in the construction segment and challenging steel markets.

• Group-wide safety initiatives and emergency measures were implemented, including new safety programs, technology investments, and temporary suspension of domestic construction sites for inspections.

• Revenue for the first nine months of 2025 was KRW 52.25 trillion, down from KRW 72.69 trillion in 2024, reflecting lower steel prices and demand.

• The company maintained a strong cash position with KRW 7.17 trillion in cash and equivalents at the end of Q3 2025.

• Major investments were made in battery materials, including a 30% stake in an Australian lithium company for USD 765 million.

Financial highlights

• Q3 2025 consolidated revenue was KRW 17,261 billion, down from KRW 17,556 billion in Q2 2025.

• Operating profit rose to KRW 639 billion, up KRW 32 billion sequentially; net profit increased to KRW 387 billion from KRW 84 billion in Q2 2025.

• EBITDA margin improved to 9.6% from 9.3% in Q2 2025.

• Basic EPS for the first nine months was KRW 5,565, down from KRW 11,677 in 2024.

• Portfolio restructuring generated KRW 1.4 trillion in cash from 63 completed projects since 2024.

Outlook and guidance

• Steel profits are expected to increase in 2026 as markets normalize post-AD ruling and inventory depletes.

• Additional KRW 1.2 trillion in cash generation targeted through 63 portfolio projects by 2027.

• Management is focused on cost control, portfolio optimization, and expanding high-value product lines, especially in battery materials and infrastructure.

• Ongoing investments in decarbonization, digital transformation, and battery materials are expected to support long-term growth.

• Continued focus on safety, operational efficiency, and portfolio optimization.