POSCO Holdings (005490) Q4 2025 earnings summary

Executive summary

• 2025 saw a challenging environment with global trade policy shifts and economic slowdown, leading to a 5% year-on-year decline in consolidated revenues to KRW 69.1 trillion and a 16% drop in operating profit to KRW 1.8 trillion.

• Operating profit declined due to weak Rechargeable Battery Materials and Construction, despite a recovery in Steel; profits are expected to grow in 2026 with commercial-scale lithium production and asset sales.

• Short-term profits were protected, but accidents at POSCO E&C and ramp-up costs for new lithium and precursor plants impacted results.

• Fourth quarter profits were especially weak due to major repairs, market flooding with imports, and one-time costs from divestments and construction halts.

• Strategic overseas steel expansion, lithium operations, and JVs in the U.S. and India are set to drive future growth, with commercial production in Argentina and new acquisitions in Australia expected to contribute to profits.

Financial highlights

• 2025 consolidated revenue: KRW 69,095 billion, down from KRW 72,688 billion in 2024.

• 2025 operating profit: KRW 1,827 billion (2.6% margin), down from KRW 2,174 billion (3.0%) in 2024.

• Consolidated EBITDA for 2025 was KRW 5,984 billion, with an EBITDA margin of 8.7%.

• POSCO E&C recorded a quarterly deficit of KRW 190 billion due to construction stoppage and bad debt expenses; 2025 operating loss was KRW 452 billion.

• PZSS divestment led to a deficit of KRW 131.9 billion; sale to be completed within Q1 2026.

Outlook and guidance

• 2026 is expected to be an inflection point, with overseas steel expansion, high-margin domestic products, and lithium operations ramping up.

• Argentina lithium plant to reach full commercial production by July-August 2026, with significant profit improvements anticipated.

• Exclusion of PZSS from consolidated data will reduce deficits by KRW 200 billion in overseas steel.

• Lithium sales volume targeted at 50,000–60,000 tons, double last year’s volume.

• Cost Innovation 2030 aims to save KRW 0.4 trillion in 2026 by streamlining operations.