POSCO Holdings (005490) Q4 2025 earnings summary

Executive summary

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

Financial highlights

• 2025 consolidated revenue: KRW 69,095 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.

• 2025 net profit: KRW 504 billion, down from KRW 948 billion in 2024.

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

• Net debt increased to KRW 12,900 billion in 2025, with a net debt to equity ratio of 20.7%.

Outlook and guidance

• 2026 profits projected to rise with the start of commercial lithium production and further non-core asset sales.

• 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.