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 focus on short-term profit protection and groundwork for future growth.

• Operating profit and net profit declined in 2025 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.

• Strategic focus on decarbonization, high-margin steel products, and overseas JVs to drive growth and mitigate trade risks.

• Major one-off costs included construction halts at POSCO E&C, ramp-up costs for new lithium and precursor plants, and divestment-related expenses.

• Major lithium and battery materials projects in Argentina and Australia are set to contribute to profits from 2H 2026.

Financial highlights

• 2025 consolidated revenue: KRW 69.1 trillion, down from KRW 72.7 trillion in 2024.

• 2025 operating profit: KRW 1.8 trillion (2.6% margin), down from KRW 2.2 trillion (3.0%) in 2024.

• FY 2025 consolidated EBITDA was KRW 5.984 trillion, with an EBITDA margin of 8.7%.

• Net profit for 2025 was KRW 504 billion, down from KRW 948 billion in 2024.

• Net debt increased to KRW 12.9 trillion in 2025, with a net debt to equity ratio of 20.7%.

Outlook and guidance

• 2026 expected to be an inflection point, with overseas steel expansion, commercial lithium production, and infrastructure investments contributing to profit growth.

• Argentina lithium plant to reach full operation by July-August 2026, with significant profit improvement anticipated.

• CAPEX to increase in 2026 due to overseas steel investments and lithium asset acquisitions.

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

• Sales volume for lithium expected at 50,000–60,000 tons, double last year.