POSCO Holdings (005490) Q1 2026 earnings summary

Executive summary

• Q1 2026 saw consolidated revenue of KRW 17.9 trillion and operating profit of KRW 710 billion, both improving sequentially from the previous quarter.

• Achieved highest quarterly operating profit since merger, driven by core business stability and improved cash generation despite increased borrowings.

• Rechargeable battery materials segment narrowed losses significantly, with POSCO Argentina achieving its first-ever monthly KRW profit in March.

• Continued earnings growth in both energy and materials segments, with notable contributions from palm business consolidation.

• Strategic transformation in steel includes retiring aging facilities, expanding low-carbon EAF production, and advancing HyREX technology.

Financial highlights

• Q1 consolidated revenue: KRW 17.9 trillion, up KRW 1 trillion quarter-over-quarter.

• Q1 operating profit: KRW 710 billion; EBITDA: KRW 1.8 trillion, up KRW 721 billion QOQ.

• Sales reached KRW 8,410B, up 3% year-over-year; operating profit rose 32% to KRW 358B.

• Net income increased 36% year-over-year to KRW 277B.

• Rechargeable battery materials narrowed losses by KRW 150 billion QOQ, driven by higher Argentina lithium plant utilization.

Outlook and guidance

• Expect continued strong performance in lithium and infrastructure segments in Q2, with POSCO Argentina projected to post its first-ever quarterly KRW profit.

• Anticipate gradual profit gains in steel as geopolitical risks and input costs subside in the second half.

• Strengthening mid- to long-term competitiveness in energy through value chain execution and risk management amid geopolitical volatility.

• Commercial operation of new palm refinery expected from June 2026, with operational stabilization in 2H 2026.

• POSCO E&C aims for KRW 120 billion in operating profit for the year, despite input cost risks.