Posco Holdings Q2 Operating Profit at KRW 607 Billion, Down 18% Year-on-Year

Steel Division Achieves 5.7% Operating Margin
Secondary Battery and Infrastructure Segments Show Weakness

Posco Holdings' operating profit for the second quarter of this year fell by nearly 20% compared to the previous year. Although the steel division showed signs of recovery, sluggish performance in the secondary battery materials segment and rising construction costs dragged down the overall results.

On July 31, Posco Holdings announced that its consolidated operating profit for the second quarter was KRW 607 billion, a decrease of 18.7% from the same period last year. Revenue was KRW 17.556 trillion, down 5.1%, but compared to the previous quarter, operating profit and revenue increased by 7% and 0.7%, respectively.

By business segment, the steel division saw improvements as both domestic and export sales volumes increased, sales prices rose, and raw material prices fell. On a separate basis, Posco recorded an operating margin of 5.7%, the highest since the third quarter of 2023. The company explained that this was due to facility optimization, cost reduction, and digital transformation. Posco plans to strengthen its steel business competitiveness through the development of high value-added products and product diversification, while focusing on the commercialization of hydrogen reduction steelmaking technology.

The secondary battery materials segment suffered due to initial costs from new plant operations and falling lithium prices. The company stated that it aims to secure mid- to long-term competitiveness by acquiring lithium direct extraction technology, internalizing the raw material supply chain, and conducting paid-in capital increases. In the infrastructure segment, Posco International maintained profits in overseas businesses such as gas fields and palm plantations, but overall profit declined due to increased construction costs at Posco E&C.

Meanwhile, Posco Holdings announced that it had disposed of 11 non-core assets through restructuring since last year, securing approximately KRW 350 billion. In the second half of the year, the company plans to secure an additional KRW 1 trillion through the restructuring of 47 more assets.