Posco International (047050) Q4 2025 earnings summary

Executive summary

• Achieved record-high operating profit of KRW 1.1653 trillion in 2025, up 4.3% year-over-year, with sales of KRW 32.4 trillion, despite global economic stagnation and volatility in energy and raw materials markets.

• Net income rose to KRW 636.8 billion, up KRW 133.4 billion from the previous year.

• Focused on expanding value chains in core businesses, securing future growth via acquisitions (Indonesian palm oil, LNG vessels), and new projects (Alaska LNG, graphite mine in Tanzania).

• Enhanced global materials and mobility business, including new overseas motor core plants and rare earth supply chain diversification.

• Improved sustainable management through digital transformation, asset streamlining, and ESG initiatives, securing KRW 223 billion in cash liquidity.

Financial highlights

• Sales reached KRW 32,373.6 billion (+0.1% YoY); operating profit was KRW 1,165.3 billion (+4.3% YoY); net income was KRW 636.8 billion (+26.5% YoY).

• Energy business operating profit reached KRW 626.6 billion, accounting for 54% of total operating profit.

• Material business operating profit was KRW 538.7 billion, or 46% of total operating profit.

• EBITDA increased by 3.1% year-over-year to KRW 1,690 billion; net debt ratio declined by 3 percentage points to 62.8%.

• Palm oil business operating profit rose 23% year-over-year to KRW 101 billion.

Outlook and guidance

• 2026 focus on maximizing order intake in mobility, completing LNG storage tanks, and expanding power generation portfolio.

• Palm business expects operating profit of $170 million in 2026.

• CapEx for 2025-2027 planned at KRW 3.2 trillion, with at least 60% allocated to energy.

• 2026 CAPEX for Energy forecasted at KRW 891 billion.

• North American upstream asset investments targeted within $1 billion, with contracts expected to close by end of 2026.