POSCO Holdings Reports 639 Billion Won Operating Profit in Q3...Improvement for Third Consecutive Quarter

Solid Performance Driven by Recovery in Steel Business and Enhanced Cost Competitiveness

POSCO Holdings announced on the 27th that its consolidated operating profit for the third quarter of this year was 639 billion won, a decrease of 13.5% compared to the same period last year. Revenue for the same period declined by 5.8% to 17.261 trillion won. Net profit for the period was 387 billion won, down 22% year-on-year.

The company explained that despite uncertainties such as the global economic slowdown and the spread of protectionism, the recovery in its steel business performance led to an increase in operating profit by 32 billion won and net profit by 303 billion won compared to the previous quarter, marking improvement for the third consecutive quarter.

The steel business saw both operating profit and net profit increase for the third consecutive quarter after hitting a low in the fourth quarter of last year. Although revenue slightly decreased due to lower steel product prices, profitability improved thanks to a recovery in operating rates and cost reduction efforts. POSCO (separate basis) recorded an operating profit of 585 billion won and an operating margin of 6.6%.

In the secondary battery materials business, the deficit narrowed due to increased sales of cathode materials and the reversal of inventory valuation losses resulting from higher lithium prices. POSCO Future M reported increases in both revenue and operating profit as cathode material sales rose following the full-scale operation of its precursor plant, which was completed in June. Net profit also turned positive.

In the infrastructure segment, POSCO International maintained solid results thanks to increased profits from the power generation business, driven by higher electricity demand during the summer, and increased sales from the Senex gas field in Australia. On the other hand, POSCO E&C saw a decline in operating profit due to the reflection of estimated losses related to the Shinansan Line accident and temporary suspension of construction sites for safety inspections.

On this day, POSCO Holdings also disclosed the results of its restructuring efforts, including the disposal of low-yield and non-core assets. Through a total of seven restructuring cases in the third quarter of this year, the company generated approximately 400 billion won in cash. It plans to secure an additional 1.2 trillion won in cash and strengthen its financial soundness through 63 more restructuring initiatives by 2027.

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