Down 1.7% and 3.4% Year-on-Year
Performance Defended Amid Tariff Wars and Worsening Business Environment
Steel Business Operating Profit Up 35%, Leading Improvement
POSCO International Operating Profit Also Up 181%
Despite the worsening business environment caused by global tariff wars and economic uncertainty, POSCO Holdings managed to defend its performance, supported by improvements in its steel and infrastructure businesses.
On April 24, POSCO Holdings announced that its consolidated operating profit for the first quarter of this year was KRW 568 billion, down 1.7% compared to the same period last year. Revenue was KRW 17.437 trillion, a decrease of 3.4%. However, net profit fell by 44.3% to KRW 344 billion.
By business segment, the core steel business led the improvement in results, with operating profit rising 34.7% from the previous quarter to KRW 450 billion, driven by higher sales prices and cost reductions that improved profitability. However, due to an increase in major plant repairs, both production and sales volumes declined.
In the energy materials business, sales of high-nickel cathode materials by POSCO Future M expanded, and anode material sales also increased due to growing customer demand for supply chain diversification. In addition, profitability improved at newly operating energy materials subsidiaries, resulting in a reduced operating loss compared to the previous quarter.
In the infrastructure business, which includes energy, construction, DX, and logistics, operating profit surged 181.7% from the previous quarter to KRW 307 billion, supported by increased gas field sales at POSCO International and improved results in the power generation segment.
Since Chairman Chang Inhwa took office in March last year, POSCO Group has reorganized its businesses around steel, energy materials, and new ventures under the '2Core+New Engine' strategy. The steel business is pursuing a 'complete localization strategy' to secure local bases in high-growth, high-profit markets.
Last year, POSCO Group decided to pursue a joint integrated steel mill project with JSW Group, the largest steel group in India, and recently announced strengthened cooperation with Hyundai Motor Group in future mobility business areas such as steel and secondary battery materials.
Through joint investment in a steel mill in the United States with Hyundai Motor Group, POSCO Group aims to respond to global trade environment risks and secure a foothold in the North American steel market. In the secondary battery materials business, the group plans to strengthen strategic alliances with global top-tier companies. POSCO Group intends to secure future growth engines in its core business areas through these efforts.
POSCO Group is also accelerating restructuring of low-profit and non-core assets. Since the restructuring began last year, the group has generated approximately KRW 950 billion in cash so far and plans to achieve a cumulative cash generation of KRW 2.1 trillion by the end of this year. In 2025, POSCO Group plans to invest KRW 8.8 trillion in key projects including the construction of a new electric arc furnace in Gwangyang, the second phase of the Argentina brine lithium project, and production expansion at Senex Energy in Australia.
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